Thursday, December 13, 2012

Gold prices and the US economy

Gold prices indicate to us how good our economy really is doing. When the prices are high, that means are economy isn't doing too well. But other wise when the price of gold is low, that means our economy is doing very well. This is mostly due to the reason that most investors aren't investing with gold anymore, but mostly stocks,bonds, CD's, and etc.

In a bear market, gold's price shoot up, but when gold price's shoot up how does help determine the US GDP. In Japan, They took away the Gold standard in order to use their GDP to determine their value as a country. More recently, America not using the Gold standard also allows them to use the GDP as an indicator of their value. But I believe Gold can determine their value much more efficiently and beneficial.











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