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.

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.

Gold is flying, again, as the Fed decided to keep rates on hold. Speculation was frantic last month that there were murmurs of a possible rate hike, earlier than the expected Q4, that analysts had been quoting.

So, now we see Gold above $1300 and making headroom above the 2015 high. It’s safe to say if the price can hold above that high, then an assault on $1400 (or very least $1350) should happen over summer.

Or it may happen quicker than that.

As this article begins in Business Insider..

“Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday..”

They sure will. Gold in time of uncertainty rises, sometimes dramatically. If the Uk leaves the EU, then it should not be a surprise to see Gold instantly jump higher as money pours into a “safer” investment.

GLDWeekly