Oct 26

Dollar Gold Relationship Highlighted Again

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The Dollar’s rise today has resulted in Gold falling to under $1040 an ounce. This trend was seen across all the precious metals and indeed commodities a whole. The question remains how much is the dollar going to recover it’s losses that have taken place over the last three weeks. A balanced and moderate view needs to be taken when deciding the best time to buy more gold. If prices decline further it may well present a great opportunity to buy. Remember, Gold is still trading over $1,000 an ounce. That’s still very impressive.

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Oct 19

Gold Ends Higher Yet Again

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Gold closed higher today. This is in almost perfect correlation with the fall in the Dollar. Speaking at at the fifth Annual Value Investing Congress in New York, hedge fund manager David Einhorn has linked the strength in Gold to poor fiscal policy. As a result he signaled that he was buying gold. For me this is really amazing. A hedge fund manager advocating Gold! Who would have thought?

Oct 17

Wow What a Time For Gold

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Recently, Gold hit three consecutive highs. This has been based on a general hedge against the US Dollar. Some analysts believe that Gold will continue to rise while others believe that it was fall because the Dollar was oversold last week. Again, when it comes to Gold investing from an individual’s perspective the long term question is the most important. Most of the speculation regarding Gold in the media is focused on the short term movements. That’s a game you should be wary off.

I don’t believe in short term speculation when it comes to gold. For an individual, you should focus on using Gold as a means to protect the value of their savings in the long term. When inflation is considered Gold is still a long way off the crazy highs of the late 1970s into the early 1980s. The potential for further increases is there. However, remember that the 1970s prices where crazy. Look just take a balanced approach to the current move upwards in gold.

Be aware that in the future many central banks throughout the world will consider hiking interest rates to reduce the money supply and stop inflation. This will have an effect on gold. Keep the radar switched on.

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