Tag Archives: gold

Gold – The Long and Short of it.

It’s an understatement to say that gold is a mysterious commodity. There are wars in the Mid East and we have Russia and the United States verbally battling each other over Russia’s invasion of the Ukraine. The natural resource boom of 2011-12 is taking a breather, affecting the economies of Australia, Canada, South America and Africa. International conflicts usually drive investors to seek haven in precious metals. This time, however, they are running away from them with gold making new lows in the month of November. It is extremely difficult to make sense of these cross currents and come up with a rational sense of where gold is headed. A look at the fundamental and technical factors affecting gold trading will give us some insight about the market.Continue Reading

Where is the Price of Gold Headed?

The markets have turned in a strange performance over the past several weeks. The numbers on the economy came in weaker than expected with GDP down -.1% in April. Unlike other recoveries, spending growth has decelerated. Each year it takes a step down. This is not the way it should be. In all past recoveries, spending growth increased as the economy grew. Discretionary spending was up but 90% of that was due to inflation, especially in food and energy. Consumers are being forced to spend more. Our US deficit is running at about $17.3 trillion. The US Federal Reserve’s Balance Sheet has grown to $4.9 trillion. Surprisingly, the US stock market made a new all time high in the Dow and S & P. Gold, on the other hand, fell to its lowest level in the past 15 weeks.Continue Reading

Gold-The Long View

We always have considerable news and information about gold. Since its spectacular rise from its 2002 lows, gold has captured the imagination of investors worldwide. Unlike other assets gold has its own peculiar characteristics. Some of these are quite mysterious, yet when understood; make investing in gold more predictable.Continue Reading

Is Gold Bottoming?

For the past month analysts have said that a bottom in gold was being formed. But then on June 19, 2013 Ben Bernanke, Chairman of the US Federal Reserve announced that he would begin tapering bond purchases by the end of this year and complete the program by the middle of next year. Selling started almost immediately after his announcement with the Dow Jones Industrial Average dropping more than 200 points. On June 20th, the selling got worse with the Dow plunging 353 points and gold dropping almost $99.00 per ounce. To put this in trading format each $1.00 in a gold contract equals $100.00. So, with a drop of $99.00, the value of one contract fell $9,900. If you held 10 contracts your loss would be $99,000. On June 21st, August gold closed up $7.30 per ounce to $1293.10Continue Reading

Basics of Precious Metals Investing

Should you invest in precious metals? The answer is probably yes, but before you do so, here are some basics about this sector.Continue Reading