Gold Investments
Gold bullion isn’t getting much respect these days…and that’s perfectly fine with me. The Goldman Sachs Group, Inc. (NYSE/GS) says the precious metal has a risk of going below $1,000. Bank of America Merrill Lynch cut its forecast for the yellow metal as well. Its forecast says gold…
When gold bullion prices fell just below $1,200 an ounce on June 28 of this year, the general consensus was that buyers had run out. After all, why would someone buy an asset that was declining in value so fast? That line of thinking, which I pointed out…
One specific stock market sector that continues to be very challenging is the precious metals mining area. A combination of events has hit the precious metals producers: lower spot prices and rising costs being two of the main factors. It’s been the perfect storm for gold mining stocks,…
As gold bullion prices declined in the period from April to June of this year, so did silver prices. And just like gold bullion, the bullish case for the white metal’s prices continues to build. Demand for the white precious metal is not just robust; it is rising.…
One basic rule of economics states that when the demand increases for an item and supply for that same item declines, its price usually increases. Let’s apply this to the gold market today. Demand for gold bullion is exuberant. In spite of the decline in the price of…
When gold failed to hold above $1,800, I became skeptical. The stock market was on fire, so why would anyone want to buy gold, as the easy money was already made? Then we saw spot prices fall below $1,700, $1,600, and then $1,500...when I turned bearish. (Read “Is…
Gold bullion prices started their run-up way back in 2000, when the commodity was trading around $300.00 an ounce. From there, it took the precious metal 12 years to break above $1,900 an ounce—an unprecedented move. When an investment, such as gold bullion, rises 500%, a pullback in…
To predict future prices of any good or service, Economics 101 dictates that we must measure the demand and supply of the good or service in question. Today, I’m applying those time-proven measures to the state of gold bullion. On the demand side, we continue to hear about…
We are told by the “gold bears” that we are headed for a period of deflation ahead, so we should sell gold bullion because it doesn’t have any purpose in your portfolio. But these “gold bears” might be surprised to know that inflation in the U.S. economy is…
Back in late 2011, I created a widely circulated video that included six predictions. I hit it on the head with five of those predictions. But the winners are not what are important to my readers today; it’s the prediction I didn’t get right that’s vital now Back…
While the gold bullion naysayers keep their bearish view, the fundamentals for the precious metal continue to gain strength. We have seen a significant amount of selling in the gold bullion market. But consider this: according to data compiled by Bloomberg, gold bullion holdings in global exchange-traded products…
As readers of Profit Confidential already know, I have been bullish on both gold bullion and silver prices. I believe these two precious metals have great futures ahead of them, in spite of all the negativity about them in the mainstream media and their recent price slump—especially silver.…
Gold bullion prices are taking a hard hit. Headlines are blaring with negativity, and bears continue to say the precious metal is useless. Dear reader, they may have done a good job driving the gold bullion prices lower, but they haven’t changed my opinion on gold one bit.…
Back in April, I said gold was looking bad on the chart and that as long as the stock market continued to advance higher, the prospects for gold were dim. (Read “Is Gold’s Near-Death Crisis Over-Exaggerated? Concerns of a Market Meltdown May Not Be.”) Fast-forward two months, and…
Something a little different for my Profit Confidential family of readers today... My colleague and resident gold bug, Robert Appel, BA, BBL, LLB, is the smartest guy I know when it comes to understanding and explaining what’s happening with precious metals. Robert recently penned this commentary/forecast on the…
No matter where I look, it seems as if there’s a rush to sell gold bullion. For the week ended June 21, assets in the SPDR Gold Trust (NYSEArca/GLD)—the biggest gold bullion exchange-traded product (ETP)—declined below 1,000 tons. This is the first time since February of 2009 that…
India, the biggest consumer of gold bullion, is witnessing over-the-top demand—to the point where the government is trying to curb demand. The Finance Minister of India said last week, “Banks have a role to play in dampening the enthusiasm for gold. I think the RBI [Reserve Bank of…
This doesn’t make it easy to understand for investors who bought gold stocks and have now seen them go down in price… But while the prices of gold stocks have pulled back significantly this year, demand for physical gold bullion has gone through the proverbial roof. The U.S.…
Data from the U.S. Commodity Futures Trading Commission showed that on May 7, there were 67,374 short contracts on gold bullion—speculators betting the yellow metal will go down in price. This was 6.4% higher than it was a week earlier. (Source: Bloomberg, May 13, 2013.) According to EPFR…
In April, as gold bullion prices dropped in the futures market, or the “paper market” for gold, the United States Mint reported it sold 209,500 ounces of gold bullion coins, up 950% from the 20,000 ounces of gold bullion coins it sold in April 2012. (Source: United States…
