E Is Gold An Economic Accelerator?

So although gold is not an actual accelerator, it can be viewed as a proxy for stimulus or accelerant. It can be a very simple accelerator gauge on the dashboard of our global economic engine. So what would I do if I were Janet Yellen entering a severely deflationary period? I would go with extreme negative real interest rates, turn on the accelerant, and ramp up the price of gold. I would, in effect,  put the pedal to the metal!

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Linda Willis 3 months ago Member's comment

Good article. How do you feel about #gold with everything that's been going lately?

Mike Verge 3 months ago Author's comment

Hi Linda,

Since the amount of gold in the world is essentially fixed, the more money they print, the less each dollar is worth versus gold. So each dollar is being devalued versus gold.

Gold will stop going up when the central bank stops printing money and devaluing the dollar.

I don't see that happening soon. Do you?

Thanks for the feedback.

Mike

Linda Willis 3 months ago Member's comment

No I don't either. If anything I think #gold is an excellent safe haven during all times of uncertainty, including right now.