![]() We’re seen as being global, fair, insightful, and perhaps a bit too earnest. If you were to come up with a punchline to a joke about the Monitor, that would probably be it. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.” My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. ![]() “Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. If the economy continues to improve, the Fed may even raise interest rates to keep the economy from overheating, pushing up the cost of goods too much.Ībout a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”: The Fed has started contemplating ratcheting back its economic stimulus. Especially when the Dow started making new highs, they started thinking, 'Why am I in gold? I'm missing all the action,'" says Peter Schiff, CEO of Euro Pacific Capital. ![]() "In this world of hot money, 'what have you done for me lately,' people have lost patience. Before the big sell-off, gold was down almost seven percent. That's pushed the Dow Jones industrial average and the Standard & Poor's 500 index to record levels. economy is poised to decisively pull out of its slump following the Great Recession. "It's just that people don't feel the need for insurance right now."Įven with Monday's stock market drop, stocks have surged this year. "Gold is an insurance asset for when things go very wrong," says Nicholas Brooks, head of research and investment strategy at etf securities. That fear factor has dissipated after central bankers around the world have bailed out one economy after the other. default, meltdown in Europe - none of those events have led to financial Armageddon. While there has been a lot to worry about over the last six years - the financial crisis, the threat of a U.S. Investors also buy gold as a safe haven, a kind of insurance when they are worried about the possibility of some kind of a financial collapse. That makes gold a less attractive investment. In fact, the value of the dollar has risen recently relative to other major currencies. So far, though, inflation has remained under control, even as the economy has improved. The higher cost of goods would erode the purchasing power of dollars. Investors bought gold because they were afraid that inflation would rise too fast as a result of the Fed's effort to stimulate growth by driving down interest rates through purchases of government bonds. Here's why the gold price is falling and what the decline says about the economy:Ĭitrus crisis: As an iconic Florida crop fades, another tree rises ![]() The selling then intensified Monday as speculators dumped their holdings. Reports that Cyprus may sell some of its gold reserves to pay off its debts, following its bailout, also rattled the market. into default.īut a slowdown in inflation, combined with speculation the Federal Reserve is considering winding down its stimulus program, prompted investors to sell Friday. The precious metal peaked as lawmakers wrangled over raising the debt ceiling in the summer of 2011 and threatened to push the U.S. While gold has been gradually falling since hitting a peak of $1,900 in August 2011, the sell-off accelerated late last week.īefore the drop, gold had climbed every year since 2001, as investors bought the metal both as protection against inflation and as a so-called safe haven. The price of gold logged its biggest one-day decline in more than 30 years on Monday, tumbling $140.30, or 9 percent, to $1,361. ![]()
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