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Is There a Buy ETF in Gold? Protect Your Money?


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There are exchange traded funds for all types of investments. One of the most common today happens to be, you guessed it, GLD or other gold ETFs are involved. Based on the current appreciation of gold and the debate or controversy over why the scope of inflation expectations to protect against currency collapse. The reason for inflation is more significant because the collapsing currency story is not exactly true for every country and currency in the world, but gold is definitely sold or bought globally. Although inflation can not exist Currently measured in government statistics such as CPI (Consumer Price Index). This is a controversial figure due to the fact that when the CPI report, the Bureau of Labor Statistics ignored the food and energy from the index. We have long assumed that these commodities are a big part of household spending and have increased in recent years, but they have chosen to report basic inflation also adjusted seasonally. .

Current gold costs do not increase and decrease based on CPI or inflation. Prices rise or fall on expectations of what people think will happen, and more importantly what people think that other people will do as it relates to buying and selling. This is the driving force behind the market, not the data reported after the fact.

The world's largest exchange-traded fund, the SPDR Gold Trust (GLD) On December 7, 2010, as a side note, if all gold bulls and bulls decide on the uptrend, who will be the owner of GLD will sell the stockings? All that gold? Some gold holders take the stance that they are protecting their money or investing by buying or maintaining a position in the yellow metal.

It is unclear what kind of protection they have protected beyond the collapse of all currencies, property prices and other equity. If that type of armageddon took place, who would sell you gold in an effort to make money? If there is a collapse of the currency, what will you increase? If there is a collapse of everything, why gold does not participate? These are questions that never seem to be answered. The usual and programmatic reaction is that if the dollar collapses, gold will skyrocket because it will be the only real currency. Again, no one seems to be able to answer why. It seems that not enough people agree that if there is a deflationary swing, those with dollars will be the best place to buy assets at a great price.

Despite the fact that deflation is primarily unavoidable in the US and Euro Zone, and many still point to inflation as a result of "money printing" Has been carried out. What is NOT discussed is the deflationary environment in the twenty years Japan has experienced, and its implications for the yen and its domestic assets. They tried to "liquidate" their economy in the same way they are now, their asset prices are depressed, the Nikkei has been in the bear market for nearly 20 years and no one wants to recognize the similarity between The United States and Japan. Buying gold for protection can be just a media manipulation, fund-raising creation and pirate band wagon to drive costs an inevitable and possible thing. "

Invested with vigilance

Source by David Frost

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