Thursday, January 26, 2012

Gold glitters as much as the Euros future.

It seems the Fed and the ECB are in an arms race to print.  Euro printing makes for a stronger dollar which is largely a negative thing for all stocks and equities.  With Euro stimulus and bailout packages dominating Europe right now the Fed has been keen to attempt to keep relatively constant balance sheet with ECB, which means more dollar printing.   This is very good for gold, the ultimate safe haven from currency printing.  The only downside to gold would come if the US decides not to keep pace with Europe, and that would likely take us to depression levels the year of an election.  I'm not saying this isn't possible, but the safe bet is always on politicians doing whats best for the next election, not the country.  That being said, gold has a lot of upside going into the new year.   

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