Sep 16, 2011 12:32 am
Predicting the comings and goings of the economy is not an easy task. If it was things would likely be a whole lot more comfortable for everyone. There are basic rules that one can observe to make some assumptions about how things in the stock market or in say the price of gold at a NYC gold refinery might react to certain mitigating factors. We can monitor business to know when product launches or leadership changes might rattle or boost confidence in a particular business. Still that is only ever a guess, which is what leads us to what might be the most significant variable to try and get a hold of.
Risk is what drives the prices at gold refineries in New York and around the world. More specifically people's willingness to take risks when investing their money. Should they feel a certain confidence in an industry or company, and should they have a willingness to put their money at risk of depreciating significantly or worse disappear completely, they'll invest in stocks. Should they feel a need for the security of knowing full well that their money is accounted for in a vault somewhere with corresponding gold bricks for every digit in his or her bank balance, then it looks like gold is your answer.