What a month of turmoil in the markets. Times like these are good for traders worth their salt for this is how traders make money. A silent market is boring and unprofitable for traders but ok for long term investors.

Ok, what am i saying. This week also saw a lot of Chinese drama this time in the currency market. Might this be a sign that Beijing is finally succumbing to the realities of finance. Have they discovered finally that they can not go communist on markets and economics? Maybe. If it is true, then there is a huge economic problem in China.

Oops, too bad for that Apple trade, that S&P and gosh....there goes the Eurostoxx. What of the emerging markets that relay mostly on China buying their commodities. Whether China is slowing, falling, or sinking or whatever, any further bad news from that country will send the already paranoid traders hiding in the Treasury 10 year note. Maybe this may bring a bump in the price of gold, which has been facing its own woes lately.

Case for Gold.

Though miners are finding it tough with these low commodity prices caused by a slowing global economy, gold however, friends, has been a much stronger commodity as it has managed to overtake platinum in valuation. Of course platinum fell because of slowing growth and platinum is a heavily used industrial commodity. When people are not buying heavy duty goods, or building more ghost towns, there is not much use of any commodity? Our favourite yellow metal whose purpose in the real world seems to be largely that of a medium of exchange, has taken only a small beating when compared to all other metals and commodities.

People like Warren Buffet who have shunned gold as an investment will suddenly find it worth investing in, given the currently uncertain financial world. My idea is that as traders exit from lose making investments, or rather profit making but highly over priced equity markets, overvalued bond markets, what better place to park your money for the next two years than in gold.

Treasuries have traditionally been a safe haven for investors but with the 30 year bull market having resulted in negative yields in some parts of Europe, who would want to take that much downside risk and only a small chance of greater returns.

Gold on the other hand has been mercilessly slain together with its cousins that serve a much more everyday purpose that itself. Because of that, gold has suffered were it should not have suffered. Its real use in value preservation and now it is deeply undervalued.

Therefore, i am boldly endorsing gold for those with a two year view on things. there is just too much risk in the equity markets these days and gold has never been this cheap in years.

So as the world is seemingly sinking into a financial abyss, gold is becoming the redemptive force that will make all your investment dreams come true,kkkk.

Just in case you are reading this in the year 175 since the end of the world as they[us] knew it, gold is hovering the $1100 mark. Let us ride it until it reaches $1500 or more in the coming years. It might not have bottomed completely but it is sure coming. trade we.., trade successfully.