Direxion Daily Gold Miners Bull 2X (NUGT)

[Stocknawe]

Hey SB, I hope your Saturday is going good. I thought gold was a hedge against inflation, when you have a strong economy you have full employment, people are buying hand over fist and prices go up. As prices go up currency begins to lose buying power, but gold does not. Since 43% of gold production go to retail sales, the demand for gold will increase exponentially for jewelry and other items, but perhaps the need for gold bouillon as a protective hedge decreases. So, bottom line, why should gold prices go down with signs of a recovering economy, when in reality a strong economy is good for gold? Perhaps there is less need to hedge against currency when there is a strong economy because the currency is more stable, irrespective of inflation. When you look at history, such as Germany in the 1920s, it had runaway inflation where a wheelbarrow full of currency was worth hardly anything. This runaway inflation was not caused by a strong economy it was caused by a severe depression and the government printing presses going nuts because there was no revenue generated by income. Today gold valuation seems to contingent upon what the masters of the universe profess, lemmings are not afforded an opinion. Speaking for myself, it sucks to be a lemming!