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To: HockeyPop
Why does low unemployment make gold a buy?
10 posted on 03/22/2007 8:21:26 AM PDT by Toddsterpatriot (Why are protectionists (and goldbugs) so bad at math?)
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To: Toddsterpatriot

The Fed raises rates when it is concerned about inflation. Yesterday the fed so indicated yet chose a neutral bias with respect to rates. If your paper is worth less gold provides a hedge.

Low unemployment suggests the economy could be heating up. Increasing unemployment is suggestive of a slowing economy which is usually met with the need to provide liquidity by lowering interest rates thereby increasing borrowing leqading hopefully to economic expansion.


11 posted on 03/22/2007 8:45:42 AM PDT by HockeyPop
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