“Wednesday’s with Axel” Short Sighted (Quarter End) ….. GOLD

In our continued series of “Wednesday’s with Axel” from our Private Client Roundtable, where we discussed your great questions from the field, and many other world economic events, this week we discuss Gold, as the timing our meeting coincided with the end of the quarter.

End of the Quarter, So What?

Gold 8-16-13

Take a look at this chart. It is very easy to see when the most recent bottom was put in for the shiny metal of Gold. The end of the second quarter just so happens to also coincide. Coincidence?? We do not think so. There were many rumors of large money management firms not wanting to show they owned Gold at the end of the quarter.

Gold as a fear gauge

Axel casually stated that Gold’s movement often is associated with fear. Fear rises, gold up and visa versa. We agree and hold gold just for this diversification reason.

Gold as a defense mechanism, Inflation

Axel believes inflation is the way out as we reviewed in our Inflation/Deflation post. Inflation puts the jets under Gold and other real assets as its tangibility becomes more important during inflationary monetary declines.

Gold Forever

In closing, Axel said he thought Gold could and should be owned forever. In this point we disagree, while Gold looks like a good asset class at the current time, we never say forever!!

Have a Great Wednesday!

John Kvale

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

One response to ““Wednesday’s with Axel” Short Sighted (Quarter End) ….. GOLD

  1. Pingback: Wednesday’s with Axel Merk Final Roundup ! | $treet-¢ents

What are your thoughts ??

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s