Is it really a given that gold will decline, perhaps sharply when QE 3 ends? Has the price of gold done that well since QE 3 was implemented? Heck no. QE 3 was initiated on September 13, 2012. Gold was trading at $1772 and the dow was at 1353. Today gold was trading at $1424 and the dow was setting a record. With these facts in mind why should we presume that gold will fall, perhaps collapse, when QE 3 ends. Everyone accepts as a given that QE 3 has been a driver of gold prices when the facts indicate the opposite. The Dow though is a different story. One can make the case and many have, that the market may suffer a major decline when QE 3 ends. Many investors are lined up on the starting blocks ready to bail at the first signs of Fed movement. Should that occur where will the money go? Might some of it find it's way back to gold and silver?
Since many think that QE 3 has been supporting the price of gold it may very well drop, self fulfilling prophesy, should QE 3 end. Will it recover and run strong after the initial swoon is the question?
I don't have thin skin so don't hesitate to show me where I have it wrong. I realize that it's a contrary opinion but I laid out the why of it.
It is not a given...What is? You can spin it anyway you want. All of us can. However, based on the Special Drawing Rights (SDR), which is the current World Currency system, Japanese Yen and Euro move inverse to the US dollar (Euro affecting it more based on percentages of SDR value). Gold and Dollar can rise together for awhile, maybe 25 percent of the overall time, but generally speaking we need a weaker dollar for gold to rise in price. Time will tell and I am running out of time.