"It is a fallacy that gold goes up during a down turn. "
Well Robert Gold just closed for the day, as a faithful reader of your blog I am troubled by this quote from you. Actually I am quite shocked...so are you of the same mantra as all the other " types " who feel Gold is a mere relic?
Well it was an up day for Gold and so far 2:27 Eastern time the market are still glowing red.
Good day to you and please do keep up the great work you do here....But least we try and keep bias opinions on the "paper bug" "gold bug" thing as it does make us all look the fool at times.
I never said I was against gold as a money. I would welcome it with open arms.
However, during a downturn, not stagflation, gold is going to go down in price. The only time it bucked that trend is when FDR propped the price up during the Great Depression at the behest of Keynes and Baruch.
Search here at EPJ for keynes, baruch, gold and you will find my thinking on gold.
Just yesterday, at the same time the major indexes had heavy supply, there was a supply shock that pushed gold from 1193 down almost $25. It was only marginally higher today. Supply shocks can be the start on a trend. It must regain that 1193 level to get bullish on gold again. The US stock market has similar issues.
Mr. Wenzel is just giving you his educated opinion on the gold market. You can disagree with it, but it doesn't change the direction price is possibly headed.
If you view gold as something of value, and you aren't trading it, then don't worry about the price of gold. If it is investment, then worry about the price.
"It is a fallacy that gold goes up during a down turn. "
ReplyDeleteWell Robert Gold just closed for the day, as a faithful reader of your blog I am troubled by this quote from you. Actually I am quite shocked...so are you of the same mantra as all the other " types " who feel Gold is a mere relic?
Well it was an up day for Gold and so far 2:27 Eastern time the market are still glowing red.
Good day to you and please do keep up the great work you do here....But least we try and keep bias opinions on the "paper bug" "gold bug" thing as it does make us all look the fool at times.
I never said I was against gold as a money. I would welcome it with open arms.
ReplyDeleteHowever, during a downturn, not stagflation, gold is going to go down in price. The only time it bucked that trend is when FDR propped the price up during the Great Depression at the behest of Keynes and Baruch.
Search here at EPJ for keynes, baruch, gold and you will find my thinking on gold.
Bill,
ReplyDeleteJust yesterday, at the same time the major indexes had heavy supply, there was a supply shock that pushed gold from 1193 down almost $25. It was only marginally higher today. Supply shocks can be the start on a trend. It must regain that 1193 level to get bullish on gold again. The US stock market has similar issues.
Mr. Wenzel is just giving you his educated opinion on the gold market. You can disagree with it, but it doesn't change the direction price is possibly headed.
If you view gold as something of value, and you aren't trading it, then don't worry about the price of gold. If it is investment, then worry about the price.