Gold can serve as an economic indicator too
September 22, 2011, 3:51 PM
Myra Saefong
blogs.marketwatch.com
Forget about copper — maybe gold offers a better indication on the state of economic health.
“While industrial commodities have fallen due to the anticipated declines in global growth, the rising gold price demonstrates gold’s monetary attributes,” said Nick Barisheff, president and chief executive officer of Bullion Management Group Inc. “It is these monetary attributes which propel gold above other commodities as an indicator of global economic wealth.”
Indeed, gold is among the few commodities that have performed well in an otherwise bleak global equity market. For the year so far, gold futures GC1Z and the SPDR Gold Trust GLD have each climbed around 22%.
Gold “acts as a real-time gauge to the financial wellbeing of an economy,” Barisheff said. “Gold, in its eleventh-straight year of gains, is the anti currency. Governments cannot control it; they cannot print more of it. Gold is the mirror image of a country’s economic performance.”
“It is clear that fiscal and monetary responsibility is nowhere to be seen in the foreseeable future. Japan and Europe are facing similar economic crises,” he said. “As such, currencies will continue to fall, inflation will continue to grow and gold will continue to rise as it simply reflects the reality of the financial situation we are in.”
http://blogs.marketwatch.com/thetell/2011/09/22/gold-can-serve-as-an-economic-indicator-too/
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 