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A Stealth Bull Market Developing in Gold
here is a bull market developing in gold and few are aware of it. Given the seemingly endless urge to "stimulate" economies by central banks through quantitative easing (money printing), such as the ECB, BOE, & BOJ, it isn't difficult to imagine that gold's rally in multi-currency terms is still in its infancy.
Ask any investment professional "what is the price of gold" and they should be able to tell you what it is within $100 of its last trade. However, ask them what it is in their home currency terms and few if any would be able to give you a reasonable approximation! This is odd because if anyone in Australia wants to buy or sell gold then it will be exchanged in AUDs or euros if anyone lives within the Eurozone.
It is said that a true bull market creeps up on people when they least expect. Perhaps because everyone is still talking about the bashing that gold took since 2011, they are overlooking the fact that gold has remained more or less unchanged in USD terms for the last 18 months and it has begun to trend higher against every other currency!
Before I take a look at the behaivor of gold in multi-currency terms you might like to listen to a brilliant interview with Felix Zulauf. This interview gives a well thought out overview of the world economy and how gold fits into the situation.
Let's now look at the behavior of gold against a basket of paper currencies.
Gold in USD terms - a bear trend since 2011 perhaps but it hasn't been able to make a new low over the last 18 months - no mean feat given the strength of the USD during this time!
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here is a bull market developing in gold and few are aware of it. Given the seemingly endless urge to "stimulate" economies by central banks through quantitative easing (money printing), such as the ECB, BOE, & BOJ, it isn't difficult to imagine that gold's rally in multi-currency terms is still in its infancy.
Ask any investment professional "what is the price of gold" and they should be able to tell you what it is within $100 of its last trade. However, ask them what it is in their home currency terms and few if any would be able to give you a reasonable approximation! This is odd because if anyone in Australia wants to buy or sell gold then it will be exchanged in AUDs or euros if anyone lives within the Eurozone.
It is said that a true bull market creeps up on people when they least expect. Perhaps because everyone is still talking about the bashing that gold took since 2011, they are overlooking the fact that gold has remained more or less unchanged in USD terms for the last 18 months and it has begun to trend higher against every other currency!
Before I take a look at the behaivor of gold in multi-currency terms you might like to listen to a brilliant interview with Felix Zulauf. This interview gives a well thought out overview of the world economy and how gold fits into the situation.
Let's now look at the behavior of gold against a basket of paper currencies.
Gold in USD terms - a bear trend since 2011 perhaps but it hasn't been able to make a new low over the last 18 months - no mean feat given the strength of the USD during this time!
[You must be registered and logged in to see this link.]
