logo
  Join        Login             Stock Quote

Will Precious Metals Go Up Along With The General Stock Market?

 October 28, 2011 04:30 PM


The yellow metal, money for more than three millennia, has a close relationship to other forms of money. Some argue that it isn't gold that has risen in value in the last decade, as much that fiat currencies have lost value against gold. Ever since gold began its spectacular rise a decade ago, the U.S. dollar has lost over 80% of its purchasing power. The other currencies have not fared much better. The euro and the Japanese yen have lost over 70%. Gold is the only form of money that governments cannot create out of thin air which is why the supply of fiat currencies is expanding exponentially faster than gold supplies, which increase by about only 3% per year.

We like to pay close attention to currencies and to the multi-front currency war because of the effect on gold.

[Related -Health Care SPDR (ETF)(NYSEARCA:XLV): The Only ETF You Need To Own – For September]

In the "currency war," neutrality does not pay as Switzerland discovered when it recently had to set a floor rate at 1.20 franc per euro by selling francs. The Swiss currency had gained because it was considered a safe haven. Now that the luster of the franc has dimmed somewhat, gold is more attractive than ever as a choice for wealth preservation.

The latest battle in this currency war is heating up between the U.S. and China and a trade war between the two most important economies in the world is certainly a cause for worry. For much of the past two years China has been under pressure from the US to allow the yuan to appreciate. For its part, China has accused the U.S. of lowering the value of the dollar by printing so much of it.


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageXerox Corp. (XRX): An Insider’s $500,000 Insider Buy

Last week was a healthy week of insider buying as 194 companies reported purchase records. The number read on...

article imageQihoo 360 Technology Co Ltd. (QIHU) Q2 Earnings Preview: A Green Monday

Qihoo 360 Technology Co Ltd. (NYSE:QIHU) will report its second quarter 2014 financial results on Monday, read on...

article imageSix Stocks that Could Outperform in the next 90 days

Earlier today, Goldman Sachs put out its list of the 50 stocks that Matter Most. It’s a list of the 50 read on...

article imageFoot Locker, Inc. (FL) Q2 Earnings Preview: Running Past the Street View

Foot Locker, Inc. (NYSE:FL) plans to report financial results for its second quarter ended August 2, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Three Stocks to Consider in a Hot Sector
More Articles on: Commodity



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.