1.The fear over “money printing” at the Fed (QE). 2.The idea that the Euro sovereign debt crisis represents a condemnation of fiat money. 3. Increasing demand for gold from China. My answer is Yes.Thats why, most of my investment is based on Gold!
About the Euro debt situation, arent the other European countries bailing each other out? Are they in a better or worse situation than the United States?
Courtesy#1:Global central bankers are targeting an increase in gold holdings in their foreign exchange reserves as the value of the dollar is expected to deteriorate in the coming years. With US economic growth slowing down and with no immediate signs of a quick recovery, investment in gold is likely to continue. Over the coming years, if US economic growth remains stagnant, then the status of the dollar as a global reserve currency will come under question, making gold look attractive against a weaker dollar.
Ginger has a good point here. The recession has made people invest more on gold. If other sectors of investment improves, become a bit stable, only then the gold will be at relief. Till then the demand and price of gold will keep rising.
The Euro is going down in value also. As is the pound. What we are seeing is a difference in the rate of devaluation. The simple answer is that europe and the rest of the world are not funding the most expensive military in the world. Another factor is that as the dollar dropped, people went into the euro for safety. But keep in mind that a stronger euro in relation to the dollar did not cause a wholesale price drop in goods--oil, food etc. Think about this- the "value" of the euro went up, but prices went up too. All thats happened is that they have a little more cushion when the global economy drops.But thats only temporary.When the EU governments cannot fund social welfare programs, the real pain in europe will start
Thats an amazing post ginger, infact we have seen in the past one week that the dollar is appreciating in terms or euro and its believed to appreciate even further,we cant really say if the Gold prices will be pushed up, as far as my analysis is concerned i guess later in the 3rd quarter the prices will start increasing .
I do assume so. I have invested in gold and wish to hold for next month expecting a price hike. Let us wait for the price shoot up. Thanks
My brother has bought futures in Gold , lets see what happens, he is hoping for them to increase too, but as far as my view of the market is concerned , I don't think they will anytime soon but I am a graphist, so my analysis could be totally different from a person who has a fundamental view.
Hi we are happy to have you a graphist here on the board.Well, would you share your findings on the gold price movements?
