For the long term, the prospects for certified gold investments continue to be exceptionally promising.
Posted by Adam King on November 18, 2010
November 18, 2010 – Although it is hard to fathom recent strange movement among the dollar, stocks, and gold, that is no cause for concern about certified gold investments. After all, the stock exchange has been around less than 200 years and the dollar for only a little more than 300. Gold, on the other hand, has been the premier measure of worth throughout recorded history.
Until the various global economies become synchronized uncertainty is bound to prevail in world markets. We all got a wakeup call with the 1997-1998 Asian financial crisis, which taught us that old paradigms were no longer valid under globalization. Measures taken to correct domestic economies can have far reaching and often unpredictable implications throughout the global community, especially when economic conditions are as widely varied as they are today.
In China the problem is with excessive growth. Worried that their government was poised to slow down growth to combat inflation, Chinese investors began dumping stocks, igniting Tuesday’s selloff in markets around the world. Inexplicably the selloff then spread into the commodities markets but the diluted dollar continued to climb.
Taking the long term perspective is essential as daily movements become ever more difficult to predict. Although gold movement has strangely been in direct correlation to the stock market since September, and with the dollar up until then, history assures us that it will not continue to be so. Most likely the rapid resurgence in stock prices in the absence of any real economic growth is the anomaly and gold is responding naturally to real economic conditions.
Small dips in the gold price are to be expected, and are inconsequential compared to this year’s gain of over 22%. For the long term, the prospects for certified gold investments continue to be exceptionally promising.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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