Fool's Gold
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Gold (NYSE: GLD) has traditionally served as a safe haven for investors in times of economic turmoil or as a store of value during inflationary periods. The Economist recently argued that now is the time to invest in gold. The basic argument is that gold will perform well regardless of how well monetary policy achieves its goal of turning the economy around.
If slashing interest rates has the desired effect, the U.S. economy will likely enter into an inflationary period. This should spur a rally in gold as investors seek a hedge against the effects of inflation. If low interest rates fail to turn the economy around, gold should continue to benefit from the fear-driven buying that has driven it to its current level of around $950 an ounce.
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If slashing interest rates has the desired effect, the U.S. economy will likely enter into an inflationary period. This should spur a rally in gold as investors seek a hedge against the effects of inflation. If low interest rates fail to turn the economy around, gold should continue to benefit from the fear-driven buying that has driven it to its current level of around $950 an ounce.
Continue Reading at 247wallst.com>>>>
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