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Gold Trading Boot Camp
Book

Gold Trading Boot Camp

How to Master the Basics and Become a Successful Commodities Investor

Gregory T. Weldon
Wiley, 2007
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Editorial Rating

6

Qualities

  • Comprehensive
  • Analytical

Recommendation

This book combines personal reminiscences, economic analyses and trading know-how. Gregory T. Weldon tries with some success to balance these three important elements, but readers are likely to be most interested in his trading advice. To convey it in detail, the book relies heavily on charts. One appears on almost every page, along with commentary and an explanation of why it is relevant to trading. This approach has its strengths, particularly in conveying information about trends and statistics, but as time passes, the utility of the charts may dim. Weldon could have softened this impact by providing instructions to readers on how to extrapolate more timely charts. He could also have proofread more painstakingly, as minor errors undermine his authority, but the depth of his knowledge shines through. getAbstract recommends this ambitious book to visual learners who aspire to trade in gold.

Summary

The Gold Standard

Gold is the oldest and most secure form of wealth. Throughout history, people have returned to gold in difficult economic times.

In the wake of World War II, with memories of the economic devastation of the 1930s still fresh, the Allies founded the Bretton Woods system in July 1944. This system aimed to provide monetary stability and flexibility. The U.S. dollar would be as good as gold – in fact, it would be convertible into gold – and therefore would be the anchor of the Bretton Woods system.

The U.S. became the economic driver of the post-World War II world. Other countries depended on U.S. consumption for their own economic growth. However, the dollar’s link to gold became more and more dubious, as the U.S. printed far more dollars than the amount of gold it had to back them. By 1971, the situation was approaching a crisis. Under the Nixon administration, the U.S. “closed the gold window”: It abandoned convertibility. Since then, the U.S. dollar has had nothing to back it except the confidence of people who use it.

Face the Facts

Here are some fundamental economic facts that every trader or investor should know:

    About the Author

    Gregory T. Weldon is CEO of a company that produces several newsletters about the gold and capital markets, which he launched after building a successful career on Wall Street. He appears regularly on CNBC to discuss the gold and global capital markets.

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