It is expected that the gold market will soon break out to new highs. With this being said, much has been reported and written about the deflation and inflation puzzlement in the past. According to the Fed, there seems to be no sign of inflation. This goes to say that the Feds are more worried or concerned abut deflation instead of inflation. The markets can possibly keep going up in price and being overbought as well and can continue for a long period of time.
Gold is behaving well technically and is, thus far, on course to break out to new highs soon. On its 3-year chart we can see how the upside breakout from the Triangle led to a run at the highs, where it stalled out and reversed as it arrived near the highs in an overbought condition and with its COT figures at an extreme level. The reaction following the breakout is quite normal and we will be able to see more clearly on the shorter-term chart lower down the page just where this reaction should terminate and be followed by a breakout to new highs.
Gold is becoming money once again. The market for the standard gold one-ounce coin is no longer fragmented. Both the ugliest and the most beautiful gold coins are traded strictly by the quantity and quality of metal content, disregarding the outward appearance of the coin. Even Indian gold buyers, who, for years, considered buying jewellery to be the best investment option, are shifting from buying gold jewellery to gold coins.
It is almost certain that politicians will take the inflationary/hyperinflationary route, but it’s not really known if this option is even open to them. If you would like more on the gold market and the pros and cons, there is a link you can click on and it will give you very detailed information that you will need to know in investing and selling gold, gold bullion, gold coins and more. It will tell you what you need to look out for when searching for a gold dealer or refinery. You can prevent a lot of loss and mistakes if you take the time to click on the link to get the important information.
Investors around the world are investing in gold bars for their safety. Big investors like David Einhorn are also turning to gold as an attractive alternative to cash, as falling interest rates on savings reduce the opportunity cost of holding gold, a non-interest bearing asset. As Mr. Einhorn put it, “Picking these currencies is like choosing my favorite dental procedure. And I decided holding gold is better than holding cash, especially now that both offer no yield.” Finally, a chaotic scramble to secure physical gold has also been unleashed by negative real interest rates (below inflation) which have upset the gold “leasing” machinery in the gold industry, creating a sustained market squeeze.