"Gold, a Hedge Against the Perils of Interesting Times" (2)
Posted By George on June 21, 2009
Paper is passe
According Lubaszka, the U.S. dollar has lost more than 80% of their original values since the early 70’s when we go to the currency float, the situation is not helped by the Euro debut at the end of the 1990s. Unlike the United States dollar, the Euro is a supported gold, stability, a feature that has helped the dollar outperform over the long haul. It is for this reason that many foreign investors have been taking money from U.S. dollars and put into oil and gold, instead, one explanation for why both prices continue to increase in recent months.
“Gold prices are now rising because the Federal Reserve is printing dollars in flood proportions so that the real estate market afloat,” added Richard Russell, Dow Theory Letters editor, a trend in stock market and securities issued report since 1946. “This makes inflation, which erodes purchasing power. All the world’s central banks are inflating now, the belief in the global paper and encouraged to buy gold. India and China are spurring the price of gold also. India is the world’s largest gold consumer, and the Chinese government is actively encourage citizens to buy gold. ”
All the signs are very encouraging for gold investors. During the last 35 years, gold has increased the value of the modest $ 35 an ounce to almost $ 600. The contrast with the battered U.S. dollar, the value of the currency at this time only 20% of the value in 1970.
“When gold peaked out in the 1970s, the interest rate is at all time high,” said Lubaszka. “Now we are waiting to feel the effects of the last 9 to increase the interest rate usually lasts for 6-9 months to start to impact the economy. Now is the time to buy gold because if the price increase, pressure is exerted down on real estate, stocks and bonds and commodities such as gold tend to rise. On the trip occurred when the price of high-low. That is the time to reduce the assets of gold and increase the paper part of the portfolio. ”
The problem comes when a trader chases the latest hot stock or allow them to expand the field of vision too far. If you find that your account size and a group of shareholders, and some strategies that work, stick with it! And do not mess with it and dance with what ‘brung ya’.
I would love to have you spend some days with me at the Trader’s Forge. Trade as a coach, which I can do the most good for you. I train people in the Trader Talk Live mentoring workshops each week, but the training is very useful for people who have been to two days training Forge. The last week of training is chilling in Tampa. This month is then to Denver and Detroit.
I hope to see you in the online web training classes held throughout the day and in the two days immediately Forge Trading workshops.
Ryan with the Trade
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