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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (12024)	3/6/2015 9:33:46 AM
From: Goose94	Read Replies (1) \| Respond to of 203376

Two Charts Gold Traders Should Look At Now For gold traders it is easy to get caught up in the day to day news. The latest jobs report number, the most recent statement by a Federal Reserve official or new inflation numbers can send markets higher, lower and squiggling back and forth on the charts. For gold investors, it is important to step back from the day to day "market noise" and take the long-term view. Appreciate the big picture perspective and remember that everything goes in cycles. There are bull cycles, there are bear cycles and there are neutral or sideways price cycles. For the long-term investor bear markets or price retreats can offer buying opportunities. What are some important long-term cycles that gold traders may want to remember? Gold is viewed as an alternative currency or a vehicle for wealth preservation. Paper or fiat currencies are driven higher and lower by various government policies, which include monetary policy stimulus and bond-buying programs and unsustainable deficits and debt. Gold is an asset without credit risk related to any government. Let's look at some currency charts for perspective. Sure, the U.S. dollar index is on a tear this year and could even gain more in the months ahead. But, that is just one cycle. Remember this one? From July 2001 through March 2008, the U.S. dollar index collapsed from over 120.00 to below 71.00, or a drop of over 41%. Ouch, for those holding their wealth and savings in U.S. dollars that is a substantial loss of purchasing power in the global marketplace. Here's another currency that has taken it on the chin recently. The Russian ruble lost over 50% of its value versus the dollar in 2014. A currency's level can be viewed as sort of a "grade" ranging from an A+ to a failing F by the global investment community. How well is a country managing its finances and its economic growth policies? Countries that manage those well tend to be rewarded in the financial community with a stronger currency. For now, the dollar is the least ugly house on the block. While other advanced economies struggle, the U.S. economy is showing relative growth at the margin. But, that does not mean there are no deficits. There remain longer-term structural issues with the U.S. economy that will rear their head once again. For now, the U.S. dollar is on a tear and it is a weight on gold for now, but cycles come and cycles go. Now is the time for gold investors to examine their longer-term goals, consider the function of gold as an alternative currency and its overall lack of credit risk. By Kira Brecht,