In a trio of University academics from Australia, The United States and Ireland, researchers questioned the conventional wisdom that gold helps to protect against inflation, and argued that while it worked before 1985, it is not longer the case.
According to the researchers, the gold-inflation relationship hasn’t been stable since 1982. One of the study’s authors, Dr. Cetin Ciner of the University of North Carolina, said there was a time, especially in the 1970s and 80s, that gold markets didn’t have anything to do with inflation.
But as inflation continued, and central banks no longer had it under control, gold started becoming sensitive to inflation. Gold and inflation rates are part of a more complex relationship, which also involved U.S interest rates and the strength of the dollar.
The new paper found that interested rates also predict how sensitive gold prices will be to inflation in the future, which helps market traders in their directions. Even still, gold markets are becoming more concerned about the potential Federal Reserve slowing its bond-buying activity, influencing gold and the inflation rate even more.
About Cash for Gold USA
Cash for Gold (http://www.americacashforgold.com/) is America’s number 1 highest paying cash-cash-for-gold buyer. No matter what amount of gold you have, Cash for Gold will buy it for the highest price. To get started, head on over to the website and request a prepaid Gold Pack – Cash for Gold will pay for shipping and insurance fees, making it completely free to you.
Distributed by Iterate LLC
Company Name: Cash for Gold USA
Contact Person: Benjamin Wrights
City: San Francisco
Country: United States
iframes are not supported by your browser.