Gold Prices

Gold prices reflect the marketplace’s underlying value attributable to gold as determined by futures (derivatives) securities. Because gold is a resource commodity, its value is inherently volatile and, according to history, tends to trade in “mania” phases.

Gold prices in recent history have been quite strong, rising for the better part of a decade. Currently, gold prices have been experiencing a large price consolidation and many financial market participants feel that the commodity is about done its current price cycle.

Gold prices are influenced by a number of factors, including the value of the U.S. dollar, geopolitical events, and the perception among futures traders regarding global demand and supply for physical gold.

Strength in gold prices often reflects a view in the marketplace that there is uncertainty in the world. Their volatility makes them difficult to forecast and predict their direction. Because of this, the underlying commodity represents a risk-capital asset.

India Buying 450% More Gold?

By Monday, October 27, 2014

How Can Gold Prices Possibly Go DownThe demand and supply situation for gold bullion, something I’ve often talked about in these pages, has taken a new course…one very favorable to gold bulls like me.

Gold buying in India is up 450% in the first nine months of 2014 compared to the first nine months of 2013. (Source: Government of India, October 14, 2014.) The jump in go… Read More

A Rational Look at Gold

By Wednesday, September 24, 2014

Rational Look at GoldThe fundamentals that drive gold prices higher are in full force and improving. Central banks are buying more of the precious metal (to add to their reserves), while countries that are known to be big consumers of gold bullion post increased demand.

According to the India Bullion & Jewellers’ Association, India’s monthly g… Read More

Where I’d Put My Money Now

By Wednesday, August 13, 2014

Annual Supply of World Gold ShrinkingAs gold bullion prices declined last year, I said supply would contract as gold miners pulled back on exploration and closed mines that were not profitable at $1,200-an-ounce gold.

For the supply of gold bullion to increase, there needs to be more discoveries. Sadly, the opposite is happening. According to SNL Metals & Mining, g… Read More

Dying for Gold? This Man Almost Did

By Wednesday, April 30, 2014

Four Key Arguments for Owning GoldThe most compelling argument for owning gold bullion I have ever heard…

A 63-year-old businessman went to a doctor complaining he had swallowed a bottle cap in anger after he had a fight with his wife. After a three-hour surgery, the doctors found 14 ounces of gold bullion in the man’s stomach. The police and Customs were called, an… Read More

How Past Investment Trends Predicted This Stock Market Action

By Wednesday, April 30, 2014

Speculative Fervor Declines on Growing RiskIt’s just the same old story with stocks. One day they’re up; the next day they’re not.

If 2013 was a breakout year from the previous long-run recovery cycle, 2014 is a year of choppiness.

Stocks just can’t seem to latch onto any particular trend. A convolution of influences from earnings results to geopolitical events contin… Read More