Gold Is Not Going Anywhere Folks
- Posted by TheArmoTrader
- on November 11th, 2011
Sorry to break it to the Gold bugs, but Gold is not going anywhere anytime soon. Considering the run gold has had for the past few years, this statement might sound outlandish and not-credible but after reading some factors I list below, hopefully you see why I do not see gold going anywhere.
- QE3 will not happen….at least for some time. At the last $FED presser, Ben Bernanke, in my opinion, showed some signs of why he was not thinking about “printing more money”. First off, the $FED did not announce QE3 (check). When asked about NGDP targeting (which seems to be inflationary), he refuted it. Besides those points, the economy, while not surging in growth, is growing/improving at a modest pace (thus easing some pressure off Bernanke-pun intend). Bernanke would much rather Washington do something than the FED.
- The ECB will not monetize the debt of the PIIGS to make a significant dent anytime soon. “Kick the can down the road” type of stuff will happen here.
- Gold is not acting as a safe haven. If gold was truly a pure safe haven play, it would be up everyday there were market fears. I have seen it down/sell off on risk-off days.
- The Dollar has been strong. Contrary to what we saw during QE2 where the dollar just trended down, the dollar is actually acting as a safe haven/deflation/risk-off play.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
- One Year After Its IPO, Is Facebook Finally a Buy?
- What I’m Looking For In Apple
- What’s On The Horizon For Natural Gas?
- The Fed Should Just Print Money & Send It To People
- Banks Are Underperforming The Market
- Why The Jobs Report Is The Most & Least Important Economic Data Release
- Apple Got Its Bounce….Now What?
- The Hyperinflation Bet Never Made Sense
- Paging Dr. Copper
- Has The Market Just Been Consolidating For A Decade?
- How Much of Our Energy Spending is Gas?
- Gold’s Last Stand?
- Gas Prices More Than Stable
- X Marks The Spot
- Is Bitcoin Bubblicious?