Inflation and crisis – of which we’ve had plenty – historically drive gold prices up, and yet the London spot price has fallen 24% since Jan. 2. Like the infamous honey badger, gold prices just don’t care. But the reasons for gold’s continued fall, in spite of the apparent decay of the world, just might surprise you.
price of gold
From the Editor: We've been tracking this threat for years, ever since Keith Fitz-Gerald brought it to your attention back in January 2010. Today, Resources Specialist Peter Krauth weighs in on some recent developments in this story, because three of the commodities he covers can protect you. The Fed can't print these things... Here's Peter:
Central banks may have foolish policies, but central bankers are no dummies.
They know exactly what they're doing. They even comprehend a few of the implications, too.
Which is why it's interesting that some American central bankers have suggested doing away with the debt ceiling altogether.
Famed investor Marc Faber recently said, "The question is not tapering. The question is at what point will they increase the asset purchases to say $150 [billion], $200 [billion], a trillion dollars a month."
Faber expects the Fed's current QE4 to become "QE4-ever."
That could mean years of money printing and ultra-low rates.
Even bond king Bill Gross recently chimed in his latest monthly outlook that "The United States (and global economy) may have to get used to financially repressive - and therefore low policy rates - for decades to come."
Either way, don't depend on the Fed to save you. You can save yourself
Gold soared 3.5% last week after Congress finally reached a deal to raise the debt ceiling -- assuring that the U.S. debt will continue to balloon. But the respite to Washington's budget woes is only temporary, and that has the gold bugs licking their chops.
It's been a volatile year for those investing in gold and silver.
Gold is down some 20% year to date, and silver has lost more than 30%. The yellow metal tumbled more than 30% in the three quarters to June as fears mounted of an early end to the U.S. Federal Reserve's bond-buying program.
Gold prices today continue to bounce up and down based on speculative headlines.
Thanks to the crisis in Syria, gold prices have had a nice run lately. But now, with Wall Street in the middle of another "hate gold" campaign, is it time to buy or sell the yellow metal? This is what some of the world's top investors are doing...
Gold is down about 17% in 2013, but here's why gold prices are up today - and will continue their rise...
On Monday, as gold inched toward $1,400 an ounce, bulls claimed the yellow metal was entering a third-quarter bull market - and Tuesday's gold-price gains helped it get there.
Today the gold price seems to be taking a break from its recent run-up, but not before briefly pushing past the psychologically important $1,400 level.
Following a 1.8% surge on Friday, gold prices hit $1,407 in trading in Asia early this morning (Monday) and then pulled back to $1,390 before settling at about $1,395 an ounce.
We've been recommending gold shares for months now, ever since prices collapsed in April. But timing's getting critical, because now the market is telling you gold is set to surge...
The first piece of evidence hit my radar on August 1st, moments after Barrick Gold released its $8.7 billion "news." (More on that in a minute.)
The Commitment of Traders report - perhaps the best leading indicator for gold prices - delivered the second piece of evidence: a staggering 70% spike in "red flag" futures trading. And the third and fourth pieces of evidence just arrived.
But before we look at each of these events in detail, here's what you need to know:
Any one of these indicators is bullish on its own. So when all four signals flash at once, please don't wait.
A "Gold Convergence" like this hasn't happened in 12 years...
Gold mining stocks have likely bottomed, with gold prices stabilizing and miners reversing losses. Here’s how to find the best picks…
Gold prices today are still below $1,300 an ounce as traders in the United States and Europe continue to sell the precious metal.
Western investors were the main driving force behind redemptions of nearly $19 billion in gold-backed ETFs in the second quarter of 2013.
We've been studying the resource markets - and gold in particular - for over 30 years. And have seen almost every cycle the yellow metal has gone through.
One thing is certain in our opinion: International investors, central banks and corporations are all looking to buy gold... And these slow summer months are likely providing the best price.
Asian investors, especially in China and India, are buying coins and bullion like mad. Sales are up 22% annually in China and 52% in India.
Gold analyst Jim Willie put it best when he said: "The migration of gold from West to East is the grand story of the decade." They know, as our dear friend Richard Russell recently reminded us, that gold and international power still go hand in hand.
Beyond the obvious demand, history is also on gold's side. Gold's movements are in line with historic trends, never mind what the no-nothing, hand-wringing Cassandras are saying.
In fact, we believe this is a unique moment in history to get gold on the cheap, and take advantage of before the end of summer.
Of course, the ongoing "tapering talk" from the Fed pushed gold down sharply. That's because if the Fed stops stimulating the economy, an inflationary outcome is unlikely, especially if it's combined with higher interest rates that boost the value of the dollar. That's bad for gold.
What's more, there may be darker forces at work as well. There's a distinct possibility the gold market was manipulated [Editor's Note: here's who did it].
Yet the bottom line is that nothing material changed to justify a $700 drop in gold prices from over $1,903 in 2011 to almost $1,200 earlier this month.
In fact, this 36% fall is clearly...
Read on to see the forecast for gold prices...
What's going on with gold prices?
With the price of the yellow metal near two-year lows through much of 2013, some investors wonder whether the price decline will continue.
Is this a bear market for gold or will it rebound?
A new report from analysts at Incrementum AG in Liechtenstein says there are good reasons to be bullish on gold, which was trading Wednesday at about $1,252 an ounce.
In fact, the report, titled "In Gold We Trust 2013," set a 12-month target for gold prices at $1,480 and a long-range target at $2,230.
Rick Rule, the founder and chairman of Sprott Global Resources Investments, provided the answers.
Rule says he'd put a portion of the money into gold bullion and a portion into gold stocks.
But he warns those unfamiliar with the sector should stick to what they know: If you're bullish on gold, buy gold, but realize gold stocks don't necessarily mirror the price of the yellow metal.
The last several months have been tough on gold prices, but gold bugs haven't lost their insatiable appetite for the yellow metal. With gold officially in a bear market, demand is surging at today's bargain prices.
Gold demand is especially strong in India, where gold is the investment of choice among consumers. India's gold imports reached 162 tons in May, almost twice the average level.
That's why last week the country - the world's biggest consumer of gold - increased the duty of gold imports for the second time in six months.
The duty was boosted from 6% to 8% on gold ore, and from 5% to 7% on intermediate products
in attempts to decelerate the accelerating gold demand. Bullion prices fell 0.25% to $1,399.36 an ounce following the move.
Gold imports are one of the biggest contributors to India's mushrooming account deficit (which occurs when imports exceed exports). An increasing deficit affects the country's foreign exchange reserves and the value of its currency.
Friday, the ruppe closed below the key 57 mark against the U.S. dollar for the first time in a year. The slide further casts a shadow on India's economy amid pricier imports and heightened inflationary risks.
Policy makers in India have been attempting to reduce its deficit and improve finances as it faces possible rating downgrades. They hope the duty increase will help.