What Gold Really Means for the Economy/Investors at $1,400

As a gold bug (I officially rancid bullish on gold bullion in 2002), I see every weakness in the remuneration of gold as an opportunity to buy fresh gold-related investments. That has been my strategy for the preceding eight yearsgold prices improve on the downside and I invest more

What Gold Really Means for the Economy/Investors at $1,400

As a gold bug (I officially sour bullish on gold bullion in 2002), I see every weakness in the charge of gold as an opportunity to buy additional gold-related investments That has been my strategy for the foregone eight yearsgold prices rectify on the downside and I invest more

The last occasion I bought more gold was when gold traded at about $1,320 an ounce. Ive been waiting ever since for another buying opportunity and it fair hasnt developed But investment goes up or down in a long line, so I leave eventually retain my opportunity again

If we look at the long-term bull tout in gold, 2010 has been particularly strong for the metal Many gold stocks are up over 100% this year. Gold producers obtain never found it easier to hoist money

This got me logical as to what the strong bull vend in gold really style for investors and the economy Here are my conclusions:

For the economy, one word: Inflation The governments feasible budgetary policy, the Fed doing quantitative easing again, good rates near naught in the U.S: all of this is uncommonly inflationary If the actual estate market werent stagnant in the dumps, we would posses outright inflation amend now.

Bill Gross, the skipper of immense PIMCO, the worlds biggest pledge fund, said last week that the U.S will not likely be able to hoist benefit rates for years because of the fragile economy. I disagree with Gross, because I assume that the US. leave dearth to lift advantage rates sooner rather than modern to backing the weakening Greenback.

But supposing Gross is rectify and Im wrong, the longer interest rates stay at zero, the fresh inflation we cede gain (which is bullish for gold) If Im amend and Gross is wrong, and behalf rates do rise, gold cede rally, because interest rates cede only rise to support a devaluing US. dollar We all perceive that gold rises as the greenback devalues

As for investors, they are obviously flocking to buy gold. Why? Because they are not only concerned about inflation, but further worried about

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