• 708 days Will The ECB Continue To Hike Rates?
  • 709 days Forbes: Aramco Remains Largest Company In The Middle East
  • 710 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,110 days Could Crypto Overtake Traditional Investment?
  • 1,115 days Americans Still Quitting Jobs At Record Pace
  • 1,117 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,120 days Is The Dollar Too Strong?
  • 1,120 days Big Tech Disappoints Investors on Earnings Calls
  • 1,121 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,123 days China Is Quietly Trying To Distance Itself From Russia
  • 1,123 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,127 days Crypto Investors Won Big In 2021
  • 1,127 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,128 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,130 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,131 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,134 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,135 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,135 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,137 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Gold Thoughts

Complete and total intellectual bankruptcy of Federal Reserve was confirmed this past week. Creation and collapse of two financial bubbles in eight years would seem to suggest monetary philosophy of Federal Reserve is fatally flawed. Core rate of inflation as a tool for managing monetary policy should be declared dead, and buried in history books of foolish thinking. The entire time the Federal Reserve was driving interest rates to 1% we were told all was well because core inflation was tame. Worrying about the mortgage and housing bubble was unnecessary, cause core inflation was fine. All was clearly not fine! Bailout Ben Bernanke continues to mumble about core inflation as econometric models are used to guide the Fed's thinking. The now much poorer investors in quantitative hedge funds might explain to Bailout Ben the risks of relying on computer models.

Central banks around world have essentially eased, lowering interest rates below market equilibrium. Such action is inflationary, and will reduce the value of your money. Gold will clearly be a beneficiary of this easing. Gold has already demonstrated that it is a better investment than most quantitative hedge funds, which have been hemorrhaging investor money. Gold stocks, as shown in chart, are over sold, being ignored by investors, and should be bought. Canadian investors, especially, should look at action of CN$ after "default" by COF. Canadian dollar is likely to experience continued selling due to this event. Gold and perhaps Gold stocks at this level are the only havens from financial meltdown.

GOLD THOUGHTS are from Ned W. Schmidt,CFA,CEBS, publisher of The Value View Gold Report, monthly, and Trading Thoughts, weekly. For a subscription go to http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html. Ned will be exploring the Gold Super Cycle at The Wealth Expo in NYC, 19-21 October. For information go to www.wealthexpo.net. To receive a copy of the new Agri-Food Value View, an exploration of Agri-Food Super Cycle, write agrifoodvalueview@earthlink.net.

 

Back to homepage

Leave a comment

Leave a comment