People have thrown in the towel on gold in favor of momentum trading in stocks. It seems nearly everyone is a momentum trader now, one of the consequences of inept central bank bubble-blowing policy.
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The only way to make good is to buy the physical gold. And that feat is only getting harder and harder to accomplish as more and more gold is being bought by Central Banks, Governments and average investors.
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If the vanishing of an artificial supply of money crashed the markets and the economy once, what stretch of logic is it that has people believing it will not crash again?
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Last week, EU growth projections were reduced by a further 0.1 percent to a negative 0.4 percent. Facing this grim reality and shrinking resistance from the dominant Germans, the EU bureaucracy appear to be becoming more lenient.
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The gold price fell, dramatically, and now is bobbing about. Meanwhile, the prospects for implementing a 21st century gold standard continues to rise. Dramatically.
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Peace and prosperity- relics of the 20th Century- are way over-rated when you got gobs and gobs of cash created by the central banks worldwide.
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Amid an ongoing decline in the price of gold, a major brawl recently broke out in the elite media over…the gold standard. What is this free-for-all all about? And why does it matter?
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I still think falling gold is a good thing. And whatever the short-term turbulence, a more subdued price for gold (and commodities) bodes well for the future economy.
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If you are investing in gold, it's important to understand why! It's also important to understand your risk tolerance, timeframes, and the volatile nature of bull markets.
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The tidal wave of selling would be expected to be the coup de grace for gold's glory years. While this neat narrative may be sufficient to convince the financial media that an historic shift is underway, wiser minds will see more nuance.
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It is not a difficult stretch of the imagination to envision Portugal, Spain, Italy, and Greece, among others, finding themselves in the very same dilemma as Cyprus when it comes to being forced to sell gold.
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Marc Faber loves that gold is finally breaking down. The reason is not to gloat, or a prediction. Rather "gold will offer an excellent buying opportunity".
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The bill is well written and extremely well thought out. It does not force companies to accept gold or silver (nor should it), it merely allows businesses to do so if they want.
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It may sound absurd to those of us who remember the economy before the crash, but our new economy can't tolerate "sky high" rates of four or five percent. What would happen to the housing market and the stock market if interest rates were to return to those traditional levels? The red ink would flow in rivers.
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Bernanke has indicated that the Fed will maintain both zero percent interest rates and massive QE into the foreseeable future. We must assume that such moves will continue to create dubiously impressive trends in spending and stocks.
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