Sol Palha: Financial & Economic Insights Gold as currency: Is it time to buy or fold?

Gold as currency: Is it time to buy or fold?

Gold as currency

Remember when $25, 000 was a success? Now it is a garbage collector.

Frank Dane

Gold as Currency: The Shifting Sands of Gold

The world of finance is a fickle mistress, and the recent fluctuations in the price of gold have left many puzzled. For years, gold has been seen as a safe haven, a hedge against inflation and a store of value. But now, a new trend is emerging. The euro and the dollar are trading higher in tandem, and gold is no longer simply a commodity but a currency in its own right.

Some may scoff at the idea of gold as currency, but those who understand the intricacies of the market know that this is not a laughing matter. Traders are constantly jumping from one currency to another, looking for the best returns. And now, gold is one of those currencies. If this trend continues, we may see a correction in the short term, but the long-term benefits could be significant. Gold may finally be viewed as the ultimate currency.

The Future of Gold

As we look to the future, we can see the potential for a flood of investment in gold. If the world experiences another currency crisis, as it inevitably will, gold will be competing with all the other currencies out there. The demand for gold could increase exponentially as it serves not only as a hedge against inflation but also as a currency in its own right.

Gold Trend: A New Dawn

The days of gold as a mere commodity are over. The shifting sands of the market have revealed a new era for gold.  No longer simply a hedge against inflation, gold is now a player in the world of finance, competing with all the other currencies out there. If you haven’t considered gold as a currency, now is the time to do so. The world is changing, and gold is changing with it.

 The Strange Behavior of Gold: A Contrarian View

Gold’s Resistance to Breaking Through 1140

The resistance that gold has faced each time it has tried to break through the 1140 mark cannot be ignored. This pattern suggests that gold is more likely to correct than to trade at new highs. The strange behaviour observed on Monday and Friday, when gold dropped despite a weaker dollar, adds further evidence to this view.

The Weekly Sell Signal

The weekly sell signal for gold may have been neutralized, but it has not been invalidated. Investors should pay attention to this signal because if it is activated again, it could lead to a sharp pullback. While this may be concerning in the short term, the long-term implications of gold trading as a currency are extremely powerful and bullish.

Gold: A New Era for Investors

The idea of gold trading as currency is not new, but it has gained more attention recently. If this trend continues, it could have significant implications for investors. Gold may no longer be viewed solely as a hedge against inflation but also as a competing currency. Investors who have not considered gold as a currency may want to take a closer look.

Viewing a Pullback as a Blessing

If gold does experience a strong pullback, investors should view it as a blessing. It could be the last chance to purchase bullion below $1000. This is an opportunity to add to positions and take advantage of the potential long-term benefits of gold as currency.

The strange behaviour of gold in recent days has left many puzzled, but a contrarian view suggests that this could be a sign of a new era for gold as currency. Investors who are open to this view may benefit from the long-term bullish implications of gold as a competing currency. While short-term pullbacks may occur, they should be viewed as opportunities to add to positions and take advantage of the potential benefits of gold as a currency.

People who live in glass houses should take out insurance.

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