Gold is a strong predictor of the stock market and what is going to happen in current world events. It’s like a canary in a coal mine as far as anticipating geopolitical events and how a person’s overall investments may pan out.
Since financial institutions and political figures have taken the stock market into their power after the economic recession, there is much less flexibility in the market place. With this change has come an increase in fraudulent behavior within the market. When you consider the number of people involved in these institutions that have access to private discussions, it isn’t a big surprise to realize that this community may not have total mastery over letting information trickle down. Inside traders who obtain private information about a public company’s stock (possibly from the mouths of politicians and financial institutions themselves) start a ripple effect in the stock market days before the impactful information is released to the general public in the news media.
One may find it interesting to try watching this suspicious phenomenon as an experiment and see if you notice important news announcements being released just a few days after a fluctuation in the stock market. Where there are geopolitical changes, there will be fluctuations in the market days before the rest of the world hears about it. Where Gold comes in to this situation is that it is a very reliable barometer to monitor these fluctuations, and therefore anticipate world events that only politicians and financial insiders know about before the news is unveiled to the rest of the world.
A great example of this is when there were fears of Russia invading the Ukraine earlier this year. This past winter gold steadily climbed from a price of $1,200 an ounce in December to a price of $1,344 an ounce until, surprisingly, it started to plummet down a few days before Russian troops invaded Crimea. A few days later the price of gold jolted back up when the world was afraid of an all-out Russian invasion, but gold never went the true distance so while the public feared the worst and were certain of Putin taking over the Ukraine, the price of gold predicted that the problem was not going to become total chaos. As far as most mainstream media reports, the situation did not erupt into complete turmoil, leaving gold with its track record intact as an excellent predictor in international happenings. If a country starts to experience mayhem, the price of gold in the market will skyrocket. On the other hand, if the rate of gold stays the same, you can probably rest easy that the world won’t be changing drastically within the next few days.
Throughout history, gold has been a coveted asset during tumultuous times because of its stability as a commodity. During global crises it can be easy to become confused about where to look for reliable information regarding what is going to happen in the news and in the stock market, but just monitoring the price of gold could help you predict what may be coming and how to position your investments.
