Posted on 12/13/2023 4:40:41 PM PST by Mount Athos
Went up a few percent in 6 hours. I suppose it's "only" 3 percent and the end result is just recovering back to where it was a week ago. Still the upward spike seems unusual.
The Fed signaled that they would be dropping rates at least three times next year. This means the money printing is going to start again.
Gold was up $40-50 on the news.
It’s called diversification of assets.
Stop saying silly things.
That is not the case, nor has it ever been.
Trying to predict the market is a fool’s errand.
The best thing to do is diversify: Stocks; bonds; real estate; PMs (precious metals): cash (CDs, MMs), etc. Spread it around.
I think that Covid scrambled many of the financial calculations in gold market pricing, running the price up due to financial uncertainty, with Biden inflationary policies then keeping it up after COVID uncertainty faded.
If there’s any to spread around
Tell me about it. I had to learn that the hard way.
“If there’s any to spread around.”
There will always be something to fall back on. Just find out what is in short supply, or in demand, and make sure you have some of it. It doesn’t matter all that much what IT is.
“It’s called diversification of assets.”
My wife ensures we are diversified: https://ethaigold.com/collections/gold-chains
“If true, this would present a trading opportunity.”
To implement you would need a crystal ball to see into the future!
Yeah, our wives see gold differently than we do.
No, because it is fairly clear what action on interest rates is going to be taken by the FOMC before the meeting occurs. If one likes, one can consult the bond market to calculate the exact probability of a rate change is being priced in.
“No, because it is fairly clear what action on interest rates is going to be taken by the FOMC before the meeting occurs.”
Then why did the market rally only AFTER Powell spoke if everyone knew what he would do?
Because today the market reacted to the comments by Fed Chair Powell after the meeting. It is the Fed’s stance on future interest rates that caused the rally in both equities, bonds, and gold. It was almost certain that the Fed interest rate would be left unchanged this time.
It hit an all time high on December 3rd when the Asian markets opened. As soon as the US markets opened the next day, the Central Banks (etc.) dumped enough to bring the price down significantly.
The ‘powers that be’ can’t tolerate gold prices (and silver) staying high and hurting the peasant’s faith in the worthless fiat crap that they print.
And it is going to be worse when they make their ‘digital currency’ mandatory.
Gold is for fools.
Ammunition is a better investment than gold.
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Well, maybe. Fact is Gold is and always has been Insurance. In addition, a “ storage of wealth” for centuries. Do not confuse “ Investment “ with “ Insurance “.
Society has life insurance, car insurance, health insurance, etc….it is Wise to hold some “ financial” insurance- Gold.
“Because today the market reacted to the comments by Fed Chair Powell after the meeting.”
The market was flat all day till the 2 PM announcement jumping 200 pts BEFORE Powell spoke.
Check out the 5 year and 10 year performance of gold vs s&p500. It’s not even close.
You will do well to look into investing in index funds that model the overall stock market as well as diversify in bonds and cash. The way to wealth is to invest 10-20& of your pay over 30 years or more in index funds. Pick one. Which one matters less than actually putting in the money and not touching it. Then you can retire wealthy. It’s actually pretty simple but not easy.
Good luck.
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