Well after Gold’s rally against the dollar yesterday I thought I might explain why I’m buying gold.
After the USA’s embarrassing fiasco with the debt ceiling, I started looking into other currencies to trade, and found out some very interesting information about emerging nations such as China and India, Ben Bernanke said that Gold was not money. The Indians and Chinese think differently, the Chinese at the moment are wisely (in my opinion) looking to back their currency with Gold. The Indians are buying oil with Gold. The move for a new world reserve currency not particular to any country is in play.
A shortage of Gold
The result. (stop me if you’re bored)
Gold rockets in value against every other currency particularly the USD which will, as it is no longer the reserve currency find itself floored.
Gold sits at 1320, I entered at 1250. I am holding for another rally or two and moving my stop up to follow it 3000 pips behind.