Gold News: The Curious Case of Bull [DETAILS]

three gold bars on a black table

In this morning’s gold news, the metal appears to be drifting — and the underlying conditions are iffy.  So probably… no gold trading today.  Let’s turn to the mailbag for inspiration.

One popular question for your friendly Gold Enthusiast is “Why are some people always so bullish on gold?”

Related: Are Gold Prices “Under Pressure” In the Short Term? DETAILS

There are of course many answers to that.  In terms of gold news, the most common answers revolve around its store-of-value function: Basically, gold is scarce and it’s verifiable.  So it is both valuable in its own right AND we can tell gold apart from imposters.

Most money these days is true “paper”, and has value only because people agree it has value.  What it is made of is not rare, and central banks seem to like to make ever-increasing supplies of it.

Related: Is Gold Nearing a Crash? DETAILS

That is the biggest problem with “cash money” these days — the flood of it unleashed on the world by central banks.  Thankfully things aren’t as bad for paper money in all regards though.

Recent security features have improved paper money verification and made counterfeiting much, much more difficult if not impossible.

To help with your education about “the argument for gold,” today’s featured article runs through the economic argument using lots of pretty charts, and good logic. After reading this, you may wonder why we ever went away from the gold standard…

Related: Is Gold Supply “Less Than Expected?”

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy’s in their operations arm. He left Macy’s and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story – Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with “the student mindset”. Mike closely follows the gold, energy, and financial sectors. His motto is “Plan your trade, then trade your plan!”

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