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re: Gold...why is it down?
Posted on 2/20/13 at 4:11 pm to RCDfan1950
Posted on 2/20/13 at 4:11 pm to RCDfan1950
Why does gold do anything? Nobody knows.
But in terms of historical fundamentals compared to consumer purchasing power, gold is still too high. It has remained as high as it has for as long as it has because we are not in a normal financial environment.
When interest rates finally start going up, gold is going to sink like the rock it is, but rate hikes might be 5+ years away, so gold will still just do weird stuff for no reason.
At least that's my take on it.
But in terms of historical fundamentals compared to consumer purchasing power, gold is still too high. It has remained as high as it has for as long as it has because we are not in a normal financial environment.
When interest rates finally start going up, gold is going to sink like the rock it is, but rate hikes might be 5+ years away, so gold will still just do weird stuff for no reason.
At least that's my take on it.
1
Posted on 2/20/13 at 5:01 pm to Doc Fenton
Doc...if interest rates go up, doesn't that shrink the economy and the Stock Market with it? So the money would bail on gold and the Market and go into bonds, etc., with higher interest rates of return being paid?
Where does inflation play a role?
TIA.
Where does inflation play a role?
TIA.
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