Thursday, February 21, 2013

Will Gold Jump Soon, or Do We Have to Wait a Little Longer?

The little games being played by the Federal Reserve in having comments alleging it may quit printing before it reaches its unemployment goal, is a hoax of course, as since the latest round of endless stimulus, nothing at all has improved in that regard, making it not only unlikely to happen, but points towards the Fed trying to manipulate the markets because it knows the response it would have to the minutes from the meeting they fed us.

With that in mind, it's possible in regard to the price movement of gold, that the usual move it has made over the last several years may not happen as quickly this year. Normally the weakest gold has been from 2010 through 2012 has been during the months of February to April, which by that time it has started to gather strength.

That could definitely happen again this year, but there has been so much money thrown into the economy, that it could result in it taking a little longer to transpire in 2013.

So while there are some that are pushing investors to put their money in industrial metals, it could pose some danger over the long haul, but could be a good move in the short term.

The problem is the sentiment could quickly turn over the next several months, and to get caught when it turns negative could cause some painful downturns. At this time we're already seeing some cracks in the economic dam after the robust beginning of the year, and it appears there is nothing that will change that any time soon.

No matter what the Fed says, there is no way in this weak economic climate it's going to stop making funny money.

What the minutes of the Fed probably are meant to do is try to shore up the dollar while helping consumers by trying to push down prices. The effect won't last for long.

The bottom line is gold prices could jump as they have over the last several years sometime in the next month or so, or it may be on pause for a little longer. Either way, the price of gold will go higher, as all the fundamentals remain in place for it to do so.

No comments: