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2018-09-26

is the bubble Bursting?

In the media speculation in recent weeks about whether the gold price a bubble has formed, and whether these bursts now? Even the banks have joined in the discussion.

A study by the French Bank Société Générale (SG) , is the price of gold is in a bubble, which is now in the resolution. In other words, the SG assumes that the now twelve-year continuous upward momentum has found the gold price. The Bank is primarily due to the following reasons for a decrease in the price (source: Handelsblatt):

  • Stronger growth in the United States, and the ultra drive interest rate policy of the FED is loose
  • Rising interest rates would dampen the demand for the “interest-free Gold”
  • Persistent low Inflation
  • Rising US Dollar

We are now on the way to a bear market in Gold?

A question, which is not final can be clarified. However, it may be with certainty said, that the gold price trend is currently in a medium-term Downside. In what direction will this leave again to Rise (or real entry as mentioned above in a bear market) is to also recognize the geopolitical actions and decisions in the coming months. Conflicts are not permitted in crises, we still have enough, in which Gold his reputation as an anchor could be in trouble. Just in the past few days, due to the escalation of the Northern conflict in Korea, here’s come a new potential for Crisis.

Do you want to know more about Gold? Read in my new book: The greed for Gold.

Sources:

  • Article image: Gerd Altmann/pixelio.de
  • Handelsblatt; SG
  • Börse Stuttgart TV (BSTV)

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