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  1. Higher than expected job data in US has pulled down gold prices in international market as dollar strengthened. However strong dollar has resulted in Indian rupee quoted at sharply lower and was traded at around Rs 61 on DGCX indian rupee-USD futures.
  2. IMO the second comings for Gold is gonna to be start soon. Gold must be getting close to a bottom. No one has anything nice to say about it. The pundits and prognosticators are more pessimistic than in any time in recorded history. Gold miners are getting wiped out. There's 'More Carnage Coming'. If you thought things have been ugly for gold, then you haven't paid attention to the gold miners, which have just been decimated. As the price of gold declines further, gold will fall below the cost of production for these companies, resulting in years of negative cash flow. Gold has declined by 37% from its highs in 2011. Therefore, I believe the myth that gold is a low risk "store of value" has been exposed for what it is to the latest generation of investors. Now, I fear that as understandably dissatisfied investors exit the market, selling could beget selling and send the gold price well below the cost of production. IMO this risk is not discounted in gold equities valuations. I believe an asset that declines by 37% in value doesn't qualify as a "safe haven" or "store of value." And, it never should have. Gold is a commodity whose price can rise or fall. In conclusion, while I'd like to believe the carnage in the group is over. With short reserve lives, rising costs, rising political risks and a stagnant commodity price, I believe an argument could be made that gold equities should trade at valuation discounts to other resource equities. Instead, they continue to garner valuation premiums. Surely, we must be getting close to a Second Coming...another great opportunity in gold.
  3. Did you mean FED should give loan directly to individuals ? very funny:confused::rofl:
  4. Hello Tradeshah, I do not trade in INR / USD. I am a Finance Consultant and provide tips to export oriented companies on how to deal with their foreign exchange risk and also helps them in formulating their foreign exchange hedging strategies.
  5. Hello Henry, The problem Japan is facing now is deflation and at the same time their population is also ageing. QE by BOJ will help them in creating inflation in their economy and at the same time, it would lead to depreciation of their currency, which means that their exports will be more competitive compared to other Asian and export oriented countries. More profits on exports will lead to more production in the economy, which in turn creates more job. So QE by BoJ will help in recovering Japanese economy.
  6. How do we determine the exchange ratio between Bitcoins and Dollar ?
  7. You can buy Treasury Inflation - Protected Securities (TIPS) to hedge the inflation. For more info, check below link - Treasury Inflation Protected Securities (TIPS) Definition | Investopedia
  8. Printing money is not at all a solution to increase the inflation, and this is what Japan is doing now and due to this, their currency (Yen) has been depreciated more than 20% which makes imports costlier and exports competitive.
  9. I guess very few TL members follow or trade in INR USD Currency. This thread is created to get the TL members view on the INR USD Currency from both ling term and short term (trading) point of view. Anyone out there for INR USD ????
  10. Thank You Patuca. This seems to be a complete analysis on why an increase in Fed assets will lead to an increase in Gold price. Probably this is the good time to make an investment in Gold and the time horizon for the same should be 5-6 years.
  11. IMO we should definitely have a strategy to reduce our losses.
  12. I would rather say Quantitative Easing (QE) can be one of the factor which will help S&P 500 index to touch a new higher, may be couple of years down the line. (Fundamental point of view on the market).
  13. So you agree on my belief that increase in Fed assets will lead to increase in the gold price, may be double five years down the line.
  14. It is absolutely correct on your part that Gold prices have been falling for 2 years and at the same time Assets on the fed balance have increased over the last 2 years and continue to increase. But if you take the long term horizon (15 - 20 years), it can be easily concluded that there is a positive relationship between the Gold price and the assets on the Fed balance sheet. Whenever we try to find out the relationship, we always prefer to take the longer term horizon to reduce the impact of short term fluctuations.
  15. Hi Folks, This thread is created to discuss the expected value of gold 5 years down the line. I have got a very interesting questing on my mind so I have decided to share the same with you with the help TL. Will gold prices double five years from now ? What do you think ? Why? Shouldn't stocks be flying? Shouldn't gold be closing over $1,800...and on its way to the moon? This was on the day after the Fed announced recently the biggest program of money-printing ever undertaken by any government in history. Forty billion dollars per month. Maybe forever. Or at least until the presidential election. If it continues, that's $480 billion per year. The Federal Reserve website shows current assets of $2.8 trillion. Add nearly $500 billion per year...and it will take scarcely 5 years to double the Fed's assets, which are the foundation of America's money supply. So far, gold has tracked the increase in Fed assets. Broadly, both doubled over the last five years. Does this mean the price of gold will double five years from now?
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