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Gold’s Remarkable Price Trend

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May 212012

Gold’s remarkable price trend change between Thursday and Friday’s trading sessions gives a ray of hope to investors who are downhearted by previous week’s gold price performance. Hopefully it will be able to keep up its upward price movement given the fact that some socio political events in the market are favorable to gold.

Despite gold’s price volatility it still remains a stable and low risk safe haven investment. This is what investors are seeking for in this time of economic uncertainties, a kind of investment that does not only get them through difficult times but also offers them a great opportunity to let their investment s grow.

Here is Mike Unser giving us an overview of the current gold price trend in the precious metal market.

Gold’s Remarkable Price Trend

Gold rebounded a combined $55.30 between Thursday and Friday to spring back from its lowest price this year and eke out a 0.5% weekly gain — the first in three weeks.

Advances on Friday were largely attributed to bargain hunting and a weaker U.S. dollar which fell after its longest winning streak since 1985, a ride of gains that lasted for 14 straight sessions.

In closing Friday, gold prices for June delivery rose $17.00, or 1.1%, to $1,591.90 an ounce on the Comex in New York. The yellow metal hit an intraday low of $1,567.80 and reached a high of $1,597.50. The settlement is 3.6% higher than when gold closed on Wednesday to its lowest price this year at $1,536.60 an ounce.

Two weekly gold surveys show differing levels of expectations for gold prices next week. A Bloomberg survey was bearish for the first time in six weeks while a Kitco News survey is heavily bullish. The latter results first:

“In the Kitco News Gold Survey, out of 33 participants, 23 responded this week. Of those 23 participants, 21 see prices up, while two see prices down, and zero are neutral,” reports Kitco.

“A solid majority of participants expect prices to rally next week, especially since June gold futures on the Comex division of the New York Mercantile Exchange held the (intraday) low set on Wednesday of $1,526.70. Many said the sell-off was overdone so the rebound was in due course…

As for the Bloomberg survey, it has 13 of 29 survey participants expecting lower gold prices next week. 11 were bullish and 5 neutral.

For the year, gold prices have gained $25.10, or 2.9%.

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Despite the fact that gold had been down in previous weeks, investors and authorities are positive that gold can definitely make a comeback this week. As based from the market and industrial demands for gold, plus the natural quality of gold as a safe haven investment it is expected that gold price will rise in the coming days.

Though gold shows a very volatile pricing in the previous weeks, one must remember that the reasons that made gold a great investment and a great store of value and assets still remain.

So for those who are reluctant in investing in gold, consider those times that gold price drops as a great opportunity to invest in and store gold for future trading and use.

Indeed Gold’s Remarkable Price Trend is yet to begin.

Gold Price down, great

Gold Bullion, Gold News, Gold Price, Hyper Inflation, IMF, Inflation, Precious Metals No Responses »

Apr 242012

This last week was a not so good for the Gold Price, but that depends on what way you want to look at it, It’s a great time to buy, this is a good dip, Gold has been used for 5000 years, and barter was one of the most common ways to pay for goods, well Iran and China are planning on trading Gold for fuel. This is the beginning of using gold as money, Here is a caption from Vicky Kapur’s article explaining and giving details on the current scenario in the gold market.

Gold Price down, great

Spot gold prices fell more than half-a-per-cent to $1,632.30 per ounce at 11.35am UAE time (7.35am GMT) this morning even as traders remain concerned over fresh debt tensions in the Eurozone and lackluster trading a day before the Indian gold buying festival Akshaya Tritiya.

According to Dubai Gold and Jewellery Group’s morning rates, gold is currently at a two-week low. While 24ct gold is being retailed at Dh196.50 per gm, 22ct gold is going for Dh184.75/gm and 18ct gold is available at Dh150.75 per gm in Dubai, the city of gold.

However, according to some analysts, this may be the only window available for medium-term investors to buy gold at these prices as China, arguably the world’s only working-condition growth engine, is reportedly mulling paying for Iranian oil in gold to avoid US-led sanctions on Iran trade, which kick in on June 28, 2012.

According to reports, Iran has already offered China and India – its leading oil purchasers – oil in exchange for goods other than their local currencies like wheat, soy and other consumables including white goods.

Logically, however, Iran won’t be able to meet all its foreign goods need through such a barter mechanism, besides the fact that it will need to save a share of the proceeds for future use. That brings gold, the ultimate store of capital, into the picture.

China purchased 454 tonnes of gold over a six-year period between 2003 and 2009 (besides adding about 100 tonnes in December 2002), and come July 2012, it will perhaps make the most use of its ballooning gold reserves.

India, on the other hand, holds 557.7 tonnes of gold reserves, having bought 200 tonnes of gold from the International Monetary Fund (IMF) in October 2009.

And these are just two (admittedly largest) of Iran’s oil importers. If more countries decide to join the gold-for-oil bandwagon to avoid choosing between plying their cars on the road and a head-on collision with the US, it’s anybody’s guess to where the precious metal prices may end up in the second half of 2012.

If you want to read more about this article, click here.

As the Gold price has fallen again today investors who are anxious to protect their assets against the rising inflation and fiat currency debasement should take this opportunity to invest in gold now before gold price rise up again.

Gold Remains a Safe Asset

Currency, Gold News, Gold Price, Precious Metals No Responses »

Apr 202012

Aside from being a safe haven investment, gold has been considered by many investors as one of the safest means to manage the risks in their investment portfolios. That is because most of the time the stock market is moving directly the opposite direction of the gold. So if the stock market declines, certainly gold will move upward.

But recently this trend seems to break down, when stocks declines gold tend to fall too. This put a question whether gold is still a good choice to investment in gold.

So here is an article by Hao Li which explains why gold remains a safe asset.

Gold Remains a Safe Asset

While chances of a third round of U.S. quantitative easing measures have dimmed, the World Gold Council said Wednesday the yellow metal’s price outlook is positive due to its global appeal and value in hedging against both inflation and deflation.

In the first quarter of 2012, U.S. economic data improved and minutes from the latest Federal Reserve interest-rate-setting meeting indicated that officials were less supportive of monetary stimulus.

These developments were perceived as negative for gold because loose U.S. monetary policy, which pushes down the value of the dollar and other currencies that peg to it, is one of the biggest factors that drove up gold prices in recent years.

Still, gold managed to rise 8.6 percent in the first quarter of 2012 against the dollar because other factors supported prices, the London-based WGC said in its latest quarterly commentary.

Rising oil prices, for example, stoked inflation fears and pushed up the price of gold, a traditional hedge against the waning purchasing power of fiat currencies.

Gold is also a hedge against asset deflation, stated the WGC. The dual fears of inflation and deflation in the sovereign debt crisis-plagued euro zone, therefore, have been supportive of the yellow metal.

The WGC also pointed out that aside from the U.S. and its policies, emerging market countries like China and India are also big gold buyers.

Research from GMO LLC, a Boston-based asset management firm, shows that emerging markets were the biggest consumers of gold in the world from 2000 to 2010.

Developments in China and India in first quarter 2012, however, were arguably bearish for gold’s outlook, as China’s weak economic data and the Indian government’s announced import duties and jewelry tax hikes cast doubt on the strength of future demand from the two countries.

The WGC, nevertheless, concluded that gold “continued to exhibit a positive (upside) skew” in the first quarter of 2012.

Prices of gold fell 0.57 percent, or $9.40, to trade at $1,641.90 per ounce in afternoon trading on Wednesday in New York.

For more of this article, click here.

Despite the current situation in the market still gold remains a safe asset that one can rely on in times of economic uncertainty. It is still the best safe haven investment with the lowest investment risks in the market.

So for those who are still thinking whether or not they should invest in gold, authorities already confirmed that gold is a safe asset investment. So before gold price rise up again, make sure that you already placed your hard earned asset in an investment that is guaranteed by authorities that is safe from inflation and currency devaluation. Get a gold investment now.

Investors Are Demanding More Gold

Currency, Gold Bullion, Gold Coins, Gold News, Gold Price No Responses »

Feb 202012

Despite last year’s high precious metal price it does not stop investors getting into gold investment. Moreover as the inflation in developing markets continues, coupled with currency debasement and deflation, venture capitalist search for more stable form of investment such as gold and silver. Thus, Investors Are Demanding More Gold this coming year.

With this, here is Eric McWhinnie to give us some insight about this increasing demand in the precious metals market.

Investors Are Demanding More Gold

The annual value for gold demand in 2011 equaled $205.5 billion, an all-time high and a 29 percent gain above the 2010 value. Jewellery accounted for $99 billion in gold demand, while investment demand was close behind with nearly $83 billion. Interestingly, the majority of investment demand value was due to physical bar and coin demand, which represented $75 billion. As more investors remain skeptical and lose confidence in the global financial system, they turn to physical gold for protection. The annual report explains, “The bar and coin story is one which has traversed borders led by China, India and Europe, but other markets have also participated in terms of relative growth rates. Store of wealth demand, diversification, negative real deposit rates, the threat of inflation in developing markets, deflation in developed markets and currency debasement have all contributed to driving up demand over the last few years.”

In 2011, the average price of gold averaged $1,571 per ounce, which was more than 28 percent higher than its 2010 equivalent. Record high gold prices also failed to significantly curtail the appetite for industrial demand. The technology sector demanded 463.5 tonnes of gold in 2011, down from 466.4 tonnes in 2010, but still above the 456.3 tonne average of the preceding five year period. Within the sector, electronic demand increased from 326.9 tonnes in 2010 to 330 tonnes in 2011. The dental segment is the one area that appears to be affected by rising gold prices. Dentistry gold demand fell 10 percent year-over-year to 43.8 tonnes

Even though 2011 was filled with volatility and higher gold prices, the world still craves the only world reserve currency that can not be printed. The current trends that have fueled the 11-year gold bull market remain in place. Furthermore, gold prices continue to receive additional support as central banks not only devalue fiat currencies, but also purchase gold themselves. In the past two years, central banks have purchased more than 500 tonnes of gold. Read the full story here.

As gold bars and gold coins are a more tangible form of investment and is more secure than stocks, and with the current situation in certain markets, it is understandable why Investors Are Demanding More Gold this year.

As more and more investors are getting into precious metal ventures as a way to protect their assets, it is expected that that great opportunities for capitalist will arise as the demand for gold and silver bars and bullion coins increases.