Posted on 08/07/2009 9:52:48 AM PDT by h20skier66
Among gold investors, the major drivers of the gold price are well-known. From mine production and central-bank sales to jewelry and investment demand, gold's fundamentals have been and will continue to be extensively studied. But over the past year, a curious and sometimes dominating new gold driver has emerged.
Believe it or not, it is the US stock markets. And they certainly have not been driving gold in the traditional loose opposing manner. Historically, secular gold bulls happened during secular stock bears. Over these long time frames (17 years or so), persistent stock-market weakness gradually ramped up gold investment demand. But over the past year, we've seen something quite different from this precedent.
(Excerpt) Read more at commoditynewscenter.com ...
it doesn’t matter. but insofar as equities prices are an indication of inflation, their will be correlation with the inflation hedge, gold.
I didn’t read the article but I know a guy who’s a gazillionaire as a result of starting and maintaining his own life insurance company back in the 1960s - and he’s always telling me to put $ into gold. He says the 0 admin is only going to make matters worse and that you can’t lose with gold over the next few years (or more).
I hate when I do that.
My wife and I were just talking about this the other day. I was thinking it was a hedge against the market which some don’t believe is sustainable with the policies of the current administration.
Silver, ammo. food. (just picked and processed 17 pounds of blueberries)
Stock up and you’re set.
I can’t afford gold.
It’s much more plausible that helicopter drops of cash on the big banks by obama.gov are inflating all investments, stocks and commodities.
That money has to go somewhere.
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