But the real non-action is in gold. http://www.abc.net.au/news/2014-08-14/kohler-the-eerie-calm-before-the-gold-oil-storm/5669920 The September 2011 peak of $US1923.70 took the price above the inflation-adjusted 1980 peak for the first time. In early 2012 Goldman Sachs famously predicted the price would rise strongly. But in fact it stayed around $US1700 for a year and then collapsed in early 2013 to $US1200 and has since been gradually narrowing its trading range from $US1200-$1400 to a much tighter band around $US1300. In the past week there has been a lot of commentary that gold has climbed back above US$1300 and is heading higher because of geopolitical tensions, but that looks like the wishful thinking of gold bulls, hanging out for something - anything - to rescue them. In fact it looks like gold is not, and probably never has been, a reliable safe haven for investors worried about war. Gold rises when it looks like the value of fiat money is going to be eroded by inflation, as it did in 1980. It fell in 2013 because contrary to expectations, money printing did not cause a blowout in inflation, and instead deflation was stalking the world. Now it looks like the Fed has defeated deflation while the European Central Bank is still battling it, but bottom line: inflation is out of the picture, helped by the falling oil price. Will gold and oil remain "eerily calm" in the face of rising tensions with Russia and the Middle East? Well, never say never with assets or financial markets, but it's fair to say it will be a long time before Goldman Sachs' gold prediction comes true, and the only thing "peak" about oil was its price in 2011. Alan Kohler is finance presenter on ABC News. He tweets at @alankohler. View his full profile here.
No one is privy to the future. But...I see the world as a powder keg. IMO...it's a very good time to hold gold and silver. The war of Muslims against Muslims may spread far and wide...even into Turkey and to the North East into neighbouring countries. (Remember that Islam is the dominant religion of Turkey with 99.8% of the population being registered as Muslim) http://en.wikipedia.org/wiki/Turkey#Religion World Map. https://www.google.com.au/maps/plac...1s0x14b0155c964f2671:0x40d9dbd42a625f2a?hl=en There's plenty of hatred in many European countries towards the Islamic faith; tolerance is being challenged. History shows that Christians and Muslims have never got on well with each other. So what will this bring economically? Illegal Economic refugees are adding fuel to the fire as is the cost. The Ukraine is a powder keg! If "limited" war disrupts stops Gas and Oil stop flowing to the West and Europe there could be problems. Gazprom is very powerful. http://en.wikipedia.org/wiki/Gazprom Cheap money (Low interest rates) fuel an over-heated stock-market. The USA can't even pay their troops or public service...they are broke. A combination of world debt, religious tensions and economic refugees could break the camels back at any time. Keep stacking I say. DYODD
Long term? Definately, as history proves. Mid term? I sincerely hope so! Short term? No (jmo) er...there's always miners
Are you serious? Just in case you are See: Debt ceiling reached again http://en.wikipedia.org/wiki/United_States_debt-ceiling_crisis_of_2013
I am serious. Further, I have not received any reports from contacts in the USA that supports or reinforces this, hence the question.
http://usbudgetalert.com/ http://www.nationalmemo.com/congress-extends-u-s-borrowing-authority-2015/ Maybe an idea to keep up to date with reality instead of keeping outdated pages as reference into eternity
