If you are not familiar with what is going on in the gold trade, then you should know that something is changing. In fact, it started changing this month believe it or not in regards to quantitative easing. The thought of rushing to print more money doesn’t sit well now with the Feds, so what is going to happen?
As the dollar goes down, gold goes up, and now it’s just a matter of time and a vicious cycle. So, is the gold trade going to die? If so, how?
Gold Trade | How the Feds Are Killing the Trade
There is no doubt that the economy is volatile, but what you MUST understand is that anything that transpires in the economy will change how gold is priced too. The Feds have tried to quiet noise about a QE3, but the thing is, don’t you think we are headed that way regardless?
The reality is that things really aren’t any better, however the Fed’s didn’t really change anything, at least not yet. A few weeks ago, Ben Bernanke had the honor of speaking at a meeting and his demeanor was one that let on that QE3 was coming.
In reality those who trade in gold were counting on the Fed to flush the financial toilet in the sense that they could count on gold going up in price to create more room for profit! Not so, when the bank didn’t end up creating inflation in order to provide that opportunity for gold to rise again.
Gold Trade | What Jon Nadler Has to Say About it
Jon Nadler, the senior metals analyst for Kitco, knows that when those in the gold trade think inflation is coming that they get happy about selling off without really thinking first. Nadler is hopeful that the gold trade isn’t quite dead, and it isn’t likely that it will ever be dead simply because with the dollar going down, gold will always go up.
Gold is a currency, and it’s still a natural resource, which is what makes it so valuable. Gold is still plentiful and can be mined, but the dollar cannot. Nadler also says that it seems the economy is doing almost the opposite of what everyone thought it would do, which is why interest rates haven’t really changed, and the markets aren’t really moving much in other aspects.
This is the time when we can honestly say it feels like we are in limbo, and it just might be this way for a while. There is no way to really predict where the dollar will be or the gold trade-PERIOD.
Gold Trade | No True Metric for Gold?
So, when it comes to the gold trade what are we to think? The truth is, there really isn’t an easy way to do the math on it, and it is truly a bit fuzzy. This just means that there is no absolute metric, or no way to measure the value according to Nadler.
Are you ready to look a bit closer at the economy to plan for your future? How have you been preparing? If you need more information into the market and how to plan for your future, then CLICK HERE to get some information on the current gold trade.
Tags: Gold Trade