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Wednesday, March 31, 2010

Gold's Future Bright on Jobs Report

Gold's future looking brighter and brighter

Most people that understand the depth of what's happening around the world economically, know the future of gold is very bright, and will increase in price in the years ahead, although those trying to time the gold market could get clobbered, as it seems there will be a lot of bumps along the way, and those holding for the long term will be those who profit from the trend.

The jobs report yesterday showing another 23,000 jobs were cut by employers helped gold rise nicely, and even though the government will attempt to massage those numbers, almost everyone knows we're not anywhere near an economic recovery, and most likely are still in a deep recession.

One thing that could derail gold in the short- or mid-term would be another country being in danger of defaulting in Europe. Those who are clueless seem to think that's a reason to invest in U.S. dollar, based only on the fact it's not near as bad as the euro or most other currencies.

Even so, gold did have some days where it abandoned the normal inverse relationship with the U.S. dollar, seeming to reveal people are starting to understand gold is the place to be in times like these, although just as many days the usual inverse relationship between gold and the dollar occured, also showing there's confusion or uncertainty that gold is a better place to put your money in those types of times.

Other than that, the economic practices of governments and central banks around the world ensure gold will be strong for some time, and other than occasional anomalies, albeit some very potential strong anomalies, gold should enjoy a contiuous upward flow in price, even if there are a lot of swings while on its journey.

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