Not sure what specifically triggered
the pre-market thrust in gold and in the SPDR Gold Shares (NYSE:
GLD), but there are probably 10 fundamental reasons we can come up
with, aside from the resumption of the "flight-to-safety"
excuse.Right now, every time I think about
the reason for a powerful new upleg in gold prices, my mind
gravitates to the following thought -- that questions about the
efficacy of the most powerful governmental institutions on the
planet (the Fed and the BOJ) might slowly but surely be eating away
at investor confidence that current eco-financial problems can be
appropriately dealt with, and remedied.Once CONFIDENCE starts to
deteriorate, it will gain momentum rapidly, which will "force"
money into gold and out of all types of sovereign paper. At that
point, should it emerge, gold will be the main game in town.
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GLD - MidDay by Paulenoff
Posted by Peridot on 31st of Aug 2010 at 11:13 am
By Mike Paulenoff, MPTrader.com
Not sure what specifically triggered the pre-market thrust in gold and in the SPDR Gold Shares (NYSE: GLD), but there are probably 10 fundamental reasons we can come up with, aside from the resumption of the "flight-to-safety" excuse. Right now, every time I think about the reason for a powerful new upleg in gold prices, my mind gravitates to the following thought -- that questions about the efficacy of the most powerful governmental institutions on the planet (the Fed and the BOJ) might slowly but surely be eating away at investor confidence that current eco-financial problems can be appropriately dealt with, and remedied. Once CONFIDENCE starts to deteriorate, it will gain momentum rapidly, which will "force" money into gold and out of all types of sovereign paper. At that point, should it emerge, gold will be the main game in town.