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 continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

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 keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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