The quirky behavior of the gold market these days seems only proper in the context of what could be termed global economic chaos. Posted by James Randolph on July 13, 2011
Markets will prevail and the gold market will tell us when.
July 13, 2011 – The quirky behavior of the gold market these days seems only proper in the context of what could be termed global economic chaos. Investors are like squirrels in the road with reckless drivers bearing down on them from every direction. So why aren’t the markets responding to smooth things out?
I surmise it is because government meddling has the markets hogtied. I might excuse the Fed and our politicians for it if they had the slightest idea of what they are doing, but clearly that is not the case. The Fed is split on what to do next – something or go blind, if I recall the options correctly – and is struggling mightily to craft a new strategy. The government, meanwhile, is too busy with its lumberjack log rolling competition to see that it’s all about to go over the falls.
If you were an interstellar market analyst who just happened to be in the neighborhood at this time, you would instantly conclude that nobody down here has the foggiest notion about what they are doing. You would take a quick closer look then beat feet back home so you and your buddies down at the pub could have a rousing laugh over the fools so caught up in a losing game that they never realized the rules had changed.
That, I believe, is the root of the problem. The markets are evolving but we have yet to accept the fact. We are too busy coming up with convoluted explanations so we can shoehorn reality into obsolete paradigms. When new forces fail to yield to old methods, we only push harder.
Luckily, man has yet been able to invent a system so stupid that it could vanquish the markets. We may be getting close, but we are not there yet. Eventually, however, the markets will prevail and force a return to sanity.
Whether it be through a triumph of common sense or a cascade failure of global currencies or total global economic meltdown, doesn’t matter – change is on the way. And it will signal its arrival with skyrocketing gold market prices.
Senior Staff Writer – Certified Gold Exchange