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Shah Gilani of Money Morning explains why gold isn't soaring even though money printing is going on.
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Now here's what he's going along with the price of gold.
The Fed promises to keep on printing trillions and trillions and trillions of dollars bought gold has been relatively flat right around 17100 dollars -- out this morning it's actually at.
60s50.
-- alarming with money morning is the man who enhances our investment questions so that the question what's -- why isn't gold going through the roof.
I think it's simple -- think they're more sellers and buyers.
I don't ha ha that's not an asset maybe a little unfair that's -- -- it amounts of it's apparent from what's going on that there is some decoupling because you would imagine that given the monetary easing bill will be -- not only the United States for bank of Japan's gonna continue to -- time has been -- Around the world -- -- easing you'd expect gold.
Going -- are you really what I mean paper currencies.
On not what what they used to be world -- for example the US dollar for example the British pound.
I mean this is paper currency on the threat but at times like -- you expect.
Gold to go straight now we have a nice wrong.
But now -- is stole even though the Fed is printing and printing and printing the Japanese printed a particular predict the Europeans are gonna join in.
Is the best sense that -- -- -- that there's been both selling them via -- allowed.
Will the more it -- looking at what's going on terms of monetary easing expecting that the general expectations for inflation down the road.
Goal would be higher now anticipation of future inflation it would be steady would be -- it's not.
That's because gold is now -- tradable asset class.
It's no longer a hedge it's no longer what it used to be the decoupling has -- occur because gold simply incredible asset class.
Investors are buying and selling gold as they would any other commodity as they would any stock as it would any ETF as they do apple.
As apple has come down because have been more sellers and the buyers because of year end selling -- big hedge funds have been experiencing in selling off some -- their winners gold sinks under the same thing.
That's interest.
So gold is not the youth market that he used to be that if you can trade and announce at a moment's notice on a lot of people doing that it's just not want EU's stability.
Now tell me about gold mining chess because that's the way people use to get into goal.
Yes -- about the way down and they're down on average between -- I think probably in the 30% range from their highs.
-- gold itself -- the cash is spot is down around little over 7% so there's a disconnect between the miners and gold itself but then again.
You've got that the effect of ETFs for example there are several ways to play a gold in terms of an actual physical gold.
GLB that they have the ETF is probably the most popular and you've got some very very large hedge funds holding some very large positions.
There may be doing some year end selling in there also so again depressing the price but.
I really comes down to gold is an asset class that traders investors speculators are looking at.
Not necessarily for the connectivity between traditional roles -- -- place but just that the way to make money.
You own GLD I do not.
Would you all you prevented by any in the immediate future I'm looking at about 150 support level at that holds in -- yes but around there but not only nothing of the -- no.
Would you join my new party immigrants who just love to be in America policy I'm all in -- 100% you know an immigrant yourself I -- -- -- great program.
Shah Gilani always a pleasure thank you very much indeed thank you try this -- -- -- -- -- --
