9 votes

Bad Times for Gold Are Soon to End

For the last couple quarters, we have heard how central banks are getting ready to unwind their unprecedented monetary efforts of the past. A global recovery has been the mainstream consensus since the new year, and stocks have not disappointed those touting the recovery.

The economic recovery justification, however, at least appears to be withering even in mainstream numbers. Last Friday's job data showed the lowest participation rate since 1979 and disappointed on the headline number, with only 88K jobs created, against a 200k market expectation.

read article: http://seekingalpha.com/article/1327771-bad-times-for-gold-a...

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"The State is a gang of thieves writ large." - Murray Rothbard

How does a looming recession help gold?

It's liable to be deflationary, not inflationary. The leaked minutes divulged hints of winding down QE.

Take back the GOP and Restore America Now.

egapele's picture

I'm waiting for a post from our very own Mark Twain

to help me sort this thread out.

that makes two of us

:)

Phxarcher87's picture

I think the banks

are buying gold but are afraid to buy it fast enough to drive prices up. Between their purchasing and decline of federal reserve notes toppled with all the liabilities or demand for dollars to pay debts anyone with hard medals will find a reward if they look at the big picture.

Above all the big picture is faith in God and love from Christ and joy from the holy spirit.

"Whenever you find yourself on the side of the majority, it is time to pause and reflect" - Mark Twain

fireant's picture

I wouldn't count on it, esp not from this.

The participation rate is not a good gauge to measure "economic recovery".
Note the participation rate went parabolic about the time women's lib kicked into high gear. This is merely a re-balancing of excess workforce availability over the last 50 years as women flooded the workplace. The rate may stabilize here, or it may go down more. It won't return to 1950 levels, but it surely will settle below the parabolic peak, as all market charts do.
There is still a ton of de-leveraging occurring globally. Gold seems poised to test further lows before reversing trend. It has fallen through key support levels, and shows no oomph on the upside, despite the day's events. I am of the opinion metals are in a "bear trap", and have been for the past 18 or so months. No one knows when it will turn, but there is no real sign of soon.

Undo what Wilson did