As with other financial
investments, folks learn from experience, often events that are
costly to them.
Currently, gold investors are learning that the price of the commodity can at-times drop even when there is inflation that promises to become rampant, and the U.S. dollar buys less at home. Even when the European economies are failing and the American system is closely following a similar disastrous budget-deficit path.
Obviously, all those reasons for buying gold have not always panned out for American investors. Unless the actually clueless Federal Reserve goes on another useless loose money escapade.
The truth is, gold has never been an inflation hedge, only a bulwark against a cheapening dollar. The latter can get stronger, however, compared to other currencies. Such as the Euro. Or the Indian Rupee. (India is a big factor in gold purchases.) At which time the dollar can get stronger and gold cheaper. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets
Currently, gold investors are learning that the price of the commodity can at-times drop even when there is inflation that promises to become rampant, and the U.S. dollar buys less at home. Even when the European economies are failing and the American system is closely following a similar disastrous budget-deficit path.
Obviously, all those reasons for buying gold have not always panned out for American investors. Unless the actually clueless Federal Reserve goes on another useless loose money escapade.
The truth is, gold has never been an inflation hedge, only a bulwark against a cheapening dollar. The latter can get stronger, however, compared to other currencies. Such as the Euro. Or the Indian Rupee. (India is a big factor in gold purchases.) At which time the dollar can get stronger and gold cheaper. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole tweets
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