As the economy continues to lack job creation, investors are becoming more worried about the strength of the recovery. Many consider how much paper money has been printed and put into circulation, which may very well produce inflation. As more paper money is introduced into circulation, the value of each dollar becomes less. At this point, investors want to rid themselves of the paper currency and invest in gold and silver.

While the value of a dollar today is not what it was in 1980, there appears to have be a steady increase in the price of gold per ounce. If it continues, the actual value of gold may reach what it did in 1980. The value of a 1980 dollar would be more than it is now, as the dollar is loosing value.

This would make the price of gold seem to be higher than it was in 1980, which was around $800 at the high on the gold price chart. Current gold prices are around $1300 an ounce, but have still not reached the high of 1980 in real value.

During unstable economic times, when the value of the dollar is in question, investors will invest a portion of their net worth in gold and silver. Paper money has a history of being printed so much that each individual dollar is actually worthless.

This happened with every paper currency in the history of paper money, which began in China around the year, 800, AD. The ruination of a paper currency happened during the American Revolution, but those who held on to gold and silver kept their wealth through the hard times.

Also investing gold in your IRA is a very popular option these days, you should learn more about buying Gold stocks in your IRA, and looking at ones which trade on the Nasdaq 100 index, there are a few, and have the potential to grow exponentially over the next few years as the general markets look to be topping out.

Wholesale gold prices are high today so people will pull out their old jewelry boxes that get rid of things they no longer wear. The price is very attractive and will help cover bills in tough economic times, so they feel like they are getting their moneys worth.

It may be that they are if the economy turns around and the paper money is backed by real economic growth, but if the sky is actually falling, the gold price chart with prove that gold and silver as real money once again.

So there we have it. A victory for the underdog. Donald Trump is the next president of the USA, who would have thought it?

Certainly it’s not what the majority wanted, but he appealed to the average person in the right states to get his victory. But what does this mean to us who follow financial markets?

Everyone (including me) thought Gold would be where the money would go on a Trump victory, however it doesn’t seem that way just yet. Things might change as he gets into the Whitehouse, but right now it stocks look like they want to bounce. Relief rally if you will. If I were to predict, I would guess at Dow Jones 20,000 and maybe just above, then falling hard into his mid two years of presidency.

Gold could still end up being a really good buy over the next year, if it heads lower. Long term, there is still growth in the precious metal.

But I get the feeling Trump will want to leave a legacy behind. He’s 70, and won’t have many years ahead of him. We will see big changes, he will rebuild cities and create new jobs. So in turn business will boom, and the economy along with it.

Stocks will rally at times, and unless there is a constant shift in interest rates, I don’t think there will be much falling going on in the short term.

So hold onto your hats, and get onboard for Donald’s final hurrah.

Talk is that Deutsche Bank is going down. Down hard. However it seems the bank wants to shout out that it has plenty liquidity left to see it through.

The share price would beg to differ. The Dax and DB share price were tanking today, until just after the US open, with a huge reversal that pushed the Dax up more than 200 points. Such turnarounds are not often single day events, and I’d expect some follow through in the morning. Eyes will be on the open and see if DB can show signs of buying.

db

Energy stocks were pretty volatile too. Talk is of a cut in production of Oil, Opec seem to be giving way, although it remains to be seen whether they actually deliver on the talk. As always Opec are not in any hurry to stifle their market, even if it means pushing for higher prices.

Some shares were on the move. SSE in London was jumping around and testing investors at highs and lows. BP was also quite volatile, and looks like it won’t change that in the short term. There should be an enormous rally in energy stocks if Opec do decide to cut production. Which bodes well for the run in to the elections in a months time.

As I mentioned before, look at Gold on lead up to the election. It should give you an idea of how the traders see the result going. Gold rallying will mean Trump is in the driving seat. Uncertainty will push the stock market down, and money will pour into Gold no doubt.

Well it’s clear no one knows what the hell is happening. Gold is stuttering, after an almighty run since January. Markets are off the recent tops, but not falling hard, and Oil is bouncing around like a rubber ball.

What does that mean?

I tend to think it’s a build up to some pre-election strength in the USA. More often than not the run up to the election is a strong period (apart from an odd occasion) where markets seem to grind up higher. No doubt there will be a catalyst, maybe an unexpected piece of data.

However, Gold may be the thing to watch. If there is a serious chance that Trump may make president I would expect money to pile into Gold. Uncertainty is something the smart money doesn’t like. An old Donald is certainly an “uncertain” entity.

And if he did get in to power, we could see an excellent dip in the market for a buying opportunity with a long term view. It’s the sort of unknown that can cause a corrective move, and over extend. These always bring about a good entry point if you are patient with your entry.

Just remember, when there is fear everywhere, it’s probably time to buy.

Watch the news wires, if every other article is predicting the end of the world (in financial terms) then it’s getting near!

If we had believed the doom sayers (Zero Hedge are you listening?) you would have thought the end of the world was about to land upon us. The markets would crash for all eternity, and western nations would be brought to their knees.

Well, that’s over exaggerated, but so were peoples opinions on Brexit.

Since voting to leave the EU, the UK Markets have hit a new high for the year. The Pound, after an almighty shock, seems to have stabilized, and money on the sidelines, which was scared before the vote, is not scared anymore.

US Markets are pushing multi years highs (or thereabouts). Australian shares are flying. Gold is flying. What was all the worry about?

However there is a real warning to take heed of.

This “Brexit” thing is not something that happens in a matter of weeks. It will take years to unwind. For starters the UK still hasn’t activated article 50, which gives them 2 years to sort themselves out and leave the EU. So, now with a new Prime Minister, they will be working toward that goal.

Then we will have 2 years of negotiation on terms of leaving. New trade deals being formed, and many worries that the market will look to as “uncertain”.

Uncertainty can weigh on the markets heavy. Sentiment is the one and only driving force of the market.

So whilst it’s good that everything is rosy right now, be super aware of the “ugly” situations that are lurking around the corner.

One wrong turn and a sharp fall could happen.

it’s time to be “in” the market, but with your “low risk” hat on.