Today (Thursday), gold fell to its lowest level since January. There are three reasons why today's gold price is going down...
A few years ago I issued a gold price forecast of $5,000 an ounce. I still believe that's a realistic price target - and now prominent gold mining experts are following suit.
Rob McEwen, founder and former chair and CEO of GoldCorp, said in a recent interview, "I'm a long-term believer in gold and I see it ultimately getting to $5,000 an ounce."
Indian gold demand fell 39% at 204.1 tons in the second quarter according to data released by the World Gold Council (WGC) last week. Gold jewelry demand was also down 18% at 154.5 tons.
Import duties leftover from a currency crisis in 2013 have stifled Indian gold demand from their origination through this Q2.
Gold price forecast, Aug. 29, 2014: Buying gold during the late days of summer has proved to be a winning trade for most of the last two decades, according to Bloomberg.
Indeed, September is historically gold's best month. Over the last 20 years, the yellow metal has seen an average gain of 3% in September.
With gold prices up some 360% over the last decade, the lure of easy profits has created a whole new industry - illegal gold mining.
But the practice is hurting legitimate gold miners and costing countries millions in taxes and export revenue.
The SPDR Gold Trust Exchange-Traded Fund (NYSE Arca: GLD), one of the two major gold ETFs that trade in the United States, dropped more than 1.2% last week, from $124.77 to $123.18.
Gold prices today (Thursday) climbed higher in morning trading, on track for global gains across three consecutive trading sessions.
Today's gold prices fell to levels not seen since mid-June. By market close Thursday, the yellow metal will have fallen for a fifth-straight session - its longest slump since June 2.
Gold investing 2014 update: Gold prices have had a strong first half in 2014. At the midpoint in July, the yellow metal had gone up 9.2% in value.
Investors in physical gold have benefited from the rise. Throughout the year, gold has consistently outperformed other major asset classes like U.S. treasuries and equities.
Two themes have dominated gold news the last few months, and both have opposite effects on gold price.
While silver and gold tend to move in similar directions, this week is different.
As gold reclaims the important $1,300-an-ounce price tag that it lost in recent period of sell-offs, silver prices have moved in the opposite direction falling below $20.
Gold mining stocks have benefitted from gold prices' 6.24% rise in 2014 - with some rising as much as 13 times the gain in physical gold.
This week, Money Morning Resource Specialist Peter Krauth had his eye on two gold mining stocks that were due to release earnings: Franco-Nevada Corp. (NYSE: FNV) and Royal Gold Inc. USA (Nasdaq: RGLD).
Gold prices today (Wednesday) were up a whopping $18.70 an ounce (up 1.43%) as of 12:30 p.m. EDT. Spot gold traded at $1,307.30 an ounce after closing at $1,288.60 an ounce in the previous session.
Junior miners can be among the most speculative, most volatile stocks on earth.
They boom, bust, and repeat. Only they do this with more extreme swings than most any other market.
The Nasdaq Composite for example, home to tech and biotech stocks alike, is up by nearly 120% over the past five years, while junior miners doubled... but then gave it all back.
In the last three years, junior miners have, as a group, lost about 58%, while the S&P 500 is up 52%.
But it's looking increasingly like we're entering a brand new boom phase, with junior gold miners up as much as 45.8% this year - with a lot more in store... Full Story