Tag Archives: fed

5 reasons to love the yellow shiny metal

11 May

My mom used to tell me never to talk to strangers. One stranger told us all that inflation was controlled and below expectations, that consumers don’t want to buy gold, that he is not printing money and that his definition of the dollar is what it can buy. I don’t trust strangers, especially those who do not tell the truth.

Without me enduring more cheap analogies at this late hour, I will save you the discomfort so 5 Reasons Gold Will Continue to Shine courtesy of the TheStreet.com. The only caveat is that gold as an investment vehicle needs to be purchased on an incremental basis over time; it is not a momentum trade or for the very short term speculator. The key themes are below:

1. The declining dollar and outlook for rising U.S. inflation

2. Strong emerging market demand

3. Central banks from sellers to buyers

4. Not just a defensive asset

5. Supply has been constrained

Ben Bernanke Soundboard

7 May
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