Friday, December 20, 2013

Gold Drops to Record Low

Hot news when I woke up is Gold price dropped to US$1,129 per oz.  This is the record low in 3 years due to the Fed's tapering off the QE or quantitive easing III.  Quantitive Easing is US treasury printing money.  It is not actually printing but issuing bonds to release money into the financial system.

Gold is an asset class that does not earn interest or grow.  It is just pure metal that depends on the mood of the investment community.  So it is not good to speculate in gold.

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