Gold prices today hit three-week lows after Wednesday’s FOMC meeting revealed to investors that the Fed is about to make this drastic change…
why is gold going down
- Why Gold Prices Today Are at Three-Week Lows After FOMC Meeting
- Is Now the Time to Buy Gold and Silver?
- Why the "Smart Money" in Japan is Investing in Gold
- Jim Rogers' Prediction on Gold Prices Was Only Half of the Story
- If You're Worried About Gold Prices, You Need to Read This
- Investing in Gold: Here's What to Do Now
- Keith Fitz-Gerald on What's Driving Down the Price of Gold
- Cash in on the "Takeover Mania" in the Gold-Mining Sector With These Two Stocks
Wondering if now's the time to buy gold and silver? Wonder no more. Let me explain.
Thanks to the selloff, a buying frenzy for bullion has crashed websites, jammed phone lines and depleted inventory.
"Our website was overloaded for the first time ever Friday and Monday. Every phone line was lit up. We did seven times our normal volume," Jake Haugen, VP of sales for Texas-based Provident Metals, told Money Morning.
You see, with gold on track to log its fourth weekly decline and silver headed for the worst week in about 19 months, bargain hunting abounded.
Declines in gold and silver prices began last Thursday and accelerated Monday when gold plunged $140.40, or 9.4%, to $1,360.90 an ounce, marking its biggest one-day decline in 30 years. Since its 2011 high of nearly $1,900 an ounce, gold has tumbled 28%.
Silver slumped $2.97, or 11.3%, Monday to $23.36 an ounce, well off its 1980 record high of $49.45.
As recently as last year, investors like me were paying more than $1,700 per ounce for gold and $35 per ounce for silver.
Tokuriki Honten Co., the country's second-largest gold retailer, reported Tuesday that Japanese investors doubled their gold purchases this week from the week before.
And Reuters reported how 63-year-old Yujiro Yamashita traveled to Tokyo's Ginza district to buy gold for the first time in 20 years.
It's thanks to fears stemming from Japan's new monetary easing, known as "Abenomics."
Although Rogers admitted he wasn't going to be selling his hard assets, he predicted further consolidation and a near-term correction in the metals markets.
Predicting this short-term downturn, Rogers cautioned that gold had been on the rise for twelve consecutive years, a streak that was unparalleled. That was then.
This week, his prediction rang true as gold and silver prices took another huge hit. In the aftermath, gold prices are now down approximately 30% since reaching an all-time high in August 2011.
After an especially ugly day for gold investors on Monday, the "yellow metal" has now entered a "bear market". As of yesterday, gold is down 26% from its record close back in August 2011.
To get some expert insights on this sell-off, I telephoned Peter Krauth, our resident natural resources expert and editor of our Real Asset Returns research service.
I asked Peter for his insights on the following three questions:
- Why gold is selling off.
- What you can expect from here.
- And what investors should do now.
Gold prices tumbled $140.40, or 9.4%, to $1360.60 an ounce. This brought the two-day decline to $203.70, or 13%.
- The Federal Open Market Committee (FOMC) meeting minutes that came out last week suggested the central bank may start scaling back its monetary stimulus measures later this year, reducing inflationary pressures.
- Goldman Sachs Group Inc. (NYSE: GS) last week cut its 2013 average gold forecast, for the second time, to $1,545 from $1,610. Investors like to dump the metal after the release of bearish research.
- There have been rumors financially strapped Cyprus was selling 400 million euros of gold, 75% of its reserves to raise cash.
Gold prices ended the drastic two-day decline Tuesday, up nearly 2% to $1,387.40.
Investors want to know: What's driving down the price of gold - and how long will the plunge last?
Gold prices tumbled Monday by more than 9% - the biggest percentage drop in 30 years.
The yellow metal had fallen to just above $1,360 an ounce Monday afternoon.
And we're going to show you how to profit.
As many of you are already aware, The Wall Street Journal has just reported that stocks of gold-mining companies are dirt cheap.
Of course, Money Morning readers already knew that.
Since our experts told readers to buy gold back in late 2007 (when the "yellow metal" was trading at $770 an ounce), we've continued to ferret out the best gold-related investments.
If you heeded our advice, you were well-positioned to profit from this year's run-up in gold prices - and probably have a fatter portfolio to show for it.
If you didn't, however, don't fret. The stock market is offering investors a rare second chance.
And we're going to show you how to best benefit.