Bad jobs report and weak housing is good for gold.
Young people with jobs are afraid to buy homes and in many cases rent instead even with The Fed forcing rates on 30 yr mortgages below 4%. If they have a job change and have to move, selling a house at a loss is a worry they can do without. When I bought my first home I had to pay 11 1/2% and couldn't wait once I had the 20% down. I could have also bought an ounce of gold for a few hundres bucks.... lessons learned.
Like the 1970's. War Bucks alone are highly inflationary(they produce NOTHING). Witness the 1970's, and current day Israel examples. 10 Years at over 750 Billion per year,War. 350 Billion(at least) Dump of remaining Stimulus Money before 10/15/2012. EU Bailout another 700 to 800 Billion Euro's(1.0 to 1.1 Trillion in US Dollars) of Tarp EU. Notice who is now buying US Bonds and Fed Bills for Collateral,EU.
Venz.(Chavez) wanted his cash in Metal, see the spike last August for a reference point on just a small player asking for their holdings in metal.
Lybia's gold holdings stolen by transfer Inside Swiss Vaults, to the EU Attack Lybia Coalition. Never left the Vault theft, Swiss vaults. That didn't even make a dent in the price. Not to mention the huge cash surpluses siezed from Lybian accounts.
Think 1970's metal run up on steriods.
Every time an option expiration on the gold and silver contracts arrives, there is scrabble for physical metals, and the cash to buy it with by the Fed Banks(not all US). Like the 5/4/12 crash after Tuesday's Fed. Board of Directors Meeting. Puts and shorts to raise cash for Fed Banks, EU Bailout, and Metals Purchases. The Fed(a bond dealer) sold a lot of bonds and bills out of the Fed inventory Friday. More cash pump.
The 3 pronged attack. Stimulus(US/EU), Bond and Bill Inventory Sale(Stimulus Cash), on Put/Short Stock selling, by Fed Banks to raise(unlock) cash. And don't forget that Fed Board of Directors meeting in NY on Tueusday. All of it increased cash in circulation. There is more but that is probably about all you mind can handle, in one shot. Good luck with any of that, you will need it.
Well said I bought my first house like that also. should have bought gold also. Well said my friend. It looks like tech has run its course for now may some of the profits will move into the miners they have all been beaten down and all the major players including GG,NEM,AUY,AUQ have very low pe ratios single digets its only a matter of time QE3 is just around the corner. Imho gold has put a floor in @ $1600 an ounce and silver@ $30. Just my two cents for what there worth.
Money supply is going to increase because that is how problems are solved at the federal level. Austerity will not happen with either party in power. Sadly, Ron Paul will not be elected or anyone like him, ever. Inflation is the federal governments friend, deflation will blow up the system. Dollar devalues, and hard assets like gold, hold a steady value. Gold isn't going up really, it just requires more dollars to buy an ounce because dollars are worth less than they used to be.