The U.S economy was dealt yet another blow as the the government announced 533.000 Americans lost their jobs in November. Since the January 1, 2008 Americans have lost 1.8 million jobs.The U.S now has it’s highest unemployment rate since October 1993. These are certainly tough times in all economic sectors.
Normally one would think poor economic numbers such as high unemployment numbers, credit crunch, and the massive bail-out programs just to name a few would have the Gold market trading over $1000 per oz. However you must understand the severity of this economy ( I have been saying recession for over a year) when 1.8 million people lose their jobs they take a huge amount of money out of local economies and therefore the national economy as well.Not to mention all the people who are in foreclosures. These individuals tend to cash out of there Stocks,Bonds, 401k’s just to make ends meet.In other words ” their disposable income is now priority income”.
The saving grace in the present economic condition has been the avalanche sell-off in the Crude oil. Crude oil prices have dropped over $100 per barrel since the July 2008 highs.However if you can not afford an automobile the price of gas is a non- factor.
The Gold market has actually held very well considering the performance of the fundamentals that drive the the Gold engine. Remember when Gold was trading at $1000 per oz the Crude oil was trading over $100 per barrel and the U.S Stock Market was on it’s all- time highs.These drastic swings make for extreme volatility and create excellent trading opportunities.These are very difficult times to hold open positions especially without protective stops or hedged positions.
I have been recommending option spread positions to my clients.It certainly gives a trader his total risk factor and allows him the opportunity to make quick profits during these pendulum like swings. Long time Gold traders have had to adapt on a daily basis. Starting with “Take the money when it’s there”… and “Live to fight another day”…..
TRADE SMART……TRADE WELL…….
I CAN ASSIST THOSE WHO ARE LOOKING TO BUY GOLD COINS !
MIKE DALY
SENIOR GOLD BROKER / ANALYST
Superfutures
mdaly@superfutures.com
888-217-7683
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