Gold & Inflation Moving Higher, Faster

Gold & Inflation Moving Higher, Faster

Gold & Inflation Moving Higher, Faster


Investors are buying Gold by relying on simple investment-related mathematics

Gold will follow inflation to much higher price marks, some say as high a 5,000 oz long term, I have called it at 2,500 in the mid to long term.

“Gold is going up faster than the stock market,” Gold Bug Peter Schiff said. “Gold is up about 8 percent this year – it had a good year last year. Remember, gold started this bull market,” he said. Cautioning that Gold could dip every so often.

“Nothing goes up in a straight line. All bull markets have corrections. Gold is no exception,” he said.

“But Gold is going much, much higher. I have been predicting higher Gold prices since the late 1990’s. And Gold has outperformed stocks during that period of time and it’s going a lot higher,” he said.

“Inflation is going a lot a higher as well. And so more people are going to go into Gold.”

Investors are buying Gold by relying on simple investment-related mathematics

Holding Gold has become more attractive due to the combination of lower T-Bond yields and higher inflation readings.

However, not all economic gurus are in agreement about how buying Gold fits into the brave new world of The Trump Presidency.

“We have seen some market strategists recommend owning Gold in the event that President Trump causes World War III. Unlike potassium iodide, Gold is not an antidote to radiation exposure,” Ed Yardeni recently said.

“But it might provide great protection from a number of lesser calamities that President Trump’s detractors believe he might cause, including a global trade war or a domestic civil war,” Mr. Yardeni writes

“Our new President has hit the ground running, but there’s probably more mud than he expected,” Mr. Yardeni wrote.

“Gold might rally if he stumbles badly. Or else it might rally because Trump’s policies boost economic growth, as he promised. If so, the rebound in commodity prices that started at the end of 2015 may continue.”

US President Donald Trump will be a strong, demanding leader who applies the best of his negotiating skills to push for US growth.

President Trump will not be an ideological purist like Republicans who support free trade but do not fight for fair trade.

Our Republic has had anti-business President now for 8 years who did not take a hard-nosed attitude towards these trade deals. President Donald Trump is going to get better deals for us, which is still free trade.

HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bullish (0.29) Bullish (0.29) Bullish (0.29) Bullish (0.28)

Stay tuned…

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