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

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

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

As a gold bug (I officially rotten 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 bygone eight yearsgold prices rewrite on the downside and I invest more

The last point 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 unbiased hasnt developed But investment goes up or down in a straggling line, so I will eventually own my opportunity again.

If we look at the long-term bull doorstep 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 exalt money.

This got me cognitive as to what the strong bull peddle in gold really fashion for investors and the economy Here are my conclusions:

For the economy, one word: Inflation The governments easy capital policy, the Fed doing quantitative easing again, interest rates imminent nothingness in the U.S: all of this is thumping inflationary If the real estate doorstep werent inactive in the dumps, we would obtain outright inflation repair now

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Bill Gross, the probe of monstrous PIMCO, the worlds biggest promise fund, said last week that the U.S will not likely be able to exalt gain rates for years because of the fragile economy I disagree with Gross, because I assume that the US leave absence to elevate advantage rates sooner fairly than later to help the weakening Greenback.

But supposing Gross is remedy and Im wrong, the longer gain rates stay at zero, the further inflation we commit gain (which is bullish for gold) If Im fix and Gross is wrong, and good rates do rise, gold leave rally, because welfare rates will only rise to backing a devaluing US. dollar We all comprehend 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 also worried about

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