by Mike Turner, editor Mastering the Markets
I am not a "gold bug." However, I cannot ignore the possibility that this entire segment of the global economy could be poised to move higher and continue to move higher for months, even years to come. It will not surprise me to see gold have consistently higher highs and higher lows for the foreseeable future. And one one to play this trend with with Eldorado Gold (EGO).
Despite the decade-long bull market for gold, this precious metal accounts for a tiny fraction of all global managed assets, according to the Barrick Gold Corporation.
As late as 1981, the percent of gold and gold mining shares as expressed in the percent of total global assets was 26%. The most recent data suggest that number today is less than 1%. One might conclude that the potential for growth in this asset class is high.
Add to this the precarious nature of the largest economic engine in the world, that of the United States. Although I wish it were not true, I believe the U.S. economy is hanging on by a thread. he U.S. dollar has been under pressure by almost every currency in the world.
Across the world there are some serious cross-currents of economic thought. Some believe that the only way to avoid another recession that could push the world into a depression is to print money like there is no tomorrow.
Others believe that the only way to bring back economic prosperity is to raise taxes. Still others believe that cutting costs is the only real imperative that will have any significant impact on a recovery.
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