Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Gold Price Trend

The gold price trend is the direction in which the overall market is moving. A bullish gold price trend is characterized by higher highs and higher lows. A bearish gold price trend is one in which there are lower highs and lower lows. With a gold price trend that is bullish, investors expect higher prices in the future and purchase gold on the hope that they will profit from this increase.

Top Five Reasons Why Gold Bullion Prices Will Move Even Higher

By for Profit Confidential

Michael Lombardi’s top five reasons why gold bullion prices will move even higher.“Considering gold bullion has gone up about 500% since 2001, how can we be so sure gold bullion in not in a bubble?” This is a common question we hear from new PROFIT CONFIDENTIAL readers.

Here are our top five reasons why we believe gold bullion prices, far from being in a bubble, have much higher to move. (Also see: Answered: Can I Still Make Money Buying Gold Now?)

  1. Few investors are aware of the bull market in gold bullion that started in 2001. If we were to take a survey of retail investors, our best guess is that less than five percent at this point have purchased gold mining stocks or gold producing stocks. Few investors understand how the actions of the government and the Federal Reserve are resulting in the price of gold bullion rising.
  2. The U.S. dollar, a fiat currency once issued by a creditor country, is now issued by a debtor country. The U.S. dollar is the reserve currency of about 70% of world central banks. As the debt of U.S. has spiraled out of control, the currency of America, the dollar, has gone from a system where it was once partially backed by gold bullion reserves to a currency that is mired in debt.
  3. The monetary policy of the U.S. has been to expand the money supply, create more dollars, to keep monetary policy expansive. Economics 101 dictate that the more of anything there is in supply, the less the eventual demand. The U.S. dollar is not exempt from supply/demand rules. Too many dollars in circulation? What other currency can investors run to when
  4. Read More

Inflation at Almost 5%…Is It Any Wonder
Dollars Buy Less and Less?

By for Profit Confidential

Gold prices rising for 10 years straight…the money supply greatly expanded…the printing press for dollars running overtime…am I the only one concerned about rapid inflation? I rarely read or hear a report talking about today’s rising prices or the hyperinflation we may sustain in the years ahead. We all know prices are rising—only housing prices have remained low. Inflation is real and it is here now.

Spot Price of Gold: Why It’s
Ready to Take Off Once Again

By for Profit Confidential

So, with investment risk high and economic data showing lackluster numbers, all the market has to trade on over the near term are corporate earnings and visibility. If what companies report doesn’t make the grade, then we should be in for more downside in stocks. Things are the way they are because of a lack of austerity, both at the individual and country level. The fact of the matter is that austerity hurts, but it’s exactly what’s required over the next few years to get things back on an even keel. What goes around comes around. For far too long, governments have been borrowing on the future of their own citizens in order to get elected. It’s happened in all Western countries and now all that debt is starting to bubble over.

Where I See Great Value in This Market

By for Profit Confidential

Here’s the story…

Gold prices usually travel in the opposite direction of the U.S. dollar trend. If the greenback is rising in value against a basket of other major world currencies, the price of gold has historically declined. The opposite is also true: If the U.S. dollar heads down in value, price for gold bullion rises.

Gold Price Holding up Extremely Well—the Bandwagon Has Further to Go

By for Profit Confidential

Investing in gold is a subject that’s been well endorsed in this publication and the spot market for gold futures has been due for a correction. But, we aren’t getting much of a correction in gold (right now) because global investors feel that investment risk is high enough to justify gold future prices at almost record highs.

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