Gold has been rallying these past 4 weeks but suddenly slowed down. Wondering if the price was going back down I went for search of information. In the bloomberg site I found this article: http://www.bloomberg.com/news/2010-08-30/gold-rallying-to-1-500-for-analysts-as-soros-s-bubble-inflates.html
I was like wow, I guess the price of gold is taking a break before it continues its rally. If investors like George Soros, John Paulson are investing in Gold should we be doing it too? They have become economically successful for a reason and continue to be successful so they are doing something right.
Then for those that like to use technical analysis I found this article: http://uk.ibtimes.com/articles/20100831/gold-technical-precious-metals-2010-08-31.htm. According to his article the short term trend will be bearish.
My take as always is that the price for 1 oz of Gold will continue to increase. Yes there will be days where the price will slow down other days it will increase like we have seeing these past 4 weeks.
Tuesday, August 31, 2010
Friday, August 27, 2010
Prices for Gold reaching 1300 USD an ounce.
In mid-June prices for 1oz Gold was for the first time over 1250 USD. Then prices started to fall until the end of July. Since then prices have been going back up. Will the price for 1oz of gold top 1250 and go higher?
I've read mixed reports from different analysts. Some say that gold will be going as high as 1300 USD this year. It may be true since recovery has been slow in some countries and other large economies like the US have been reporting slower growth than expected.
Is gold going to reach the 1300 USD levels this year? If global recovery slows down or takes a turn for the worst and private investors looking for save investments turn to gold then I would say yes.
I've read mixed reports from different analysts. Some say that gold will be going as high as 1300 USD this year. It may be true since recovery has been slow in some countries and other large economies like the US have been reporting slower growth than expected.
Is gold going to reach the 1300 USD levels this year? If global recovery slows down or takes a turn for the worst and private investors looking for save investments turn to gold then I would say yes.
Thursday, August 26, 2010
Countries and private investors adding gold to their investments
The world economic crisis started in the end of 2007 because of overvalue of assets and banks' inability to pay their debts followed by the housing market downfall and large job losses. Since then many countries have put into place "Economic Aid Packages" to help boost growth which has given mixed results.
The US been the first to suffer from this economic crisis has continued to see the value of the dollar fall compared to other currencies from countries less affected by this crisis. This has triggered the revision of US dollar deposits held in many countries' foreign-exchange reserves. In addition, many countries have been looking for ways to diversify their economies.
China, India and Russia have been buying gold as a means of diversifying their risks and protect the value of their currencies. Many other countries may follow suit which will surely increase the value of Gold.
Let us not forget the private investor. Although there is no exact figures on how much gold is held by the private investor you can see that prices for 1oz gold has increased dramatically these past few years. The price of 1oz gold in Jan 1st, 2008 was 833.70 USD, today (Aug 28th, 2010) the price is at 1241.15 USD. That is a 48.87% increase of value in almost 2 years.
Many know that gold is a good investment during difficult economic times and returns are very good compared to other asset classes. If the value of gold continues to increase will central banks want to hold gold? How about the private investor?
It is difficult to answer both questions but gold has been a commodity sought by many throughout the centuries and it has been proven to be a reliable investment asset in difficult times.
The US been the first to suffer from this economic crisis has continued to see the value of the dollar fall compared to other currencies from countries less affected by this crisis. This has triggered the revision of US dollar deposits held in many countries' foreign-exchange reserves. In addition, many countries have been looking for ways to diversify their economies.
China, India and Russia have been buying gold as a means of diversifying their risks and protect the value of their currencies. Many other countries may follow suit which will surely increase the value of Gold.
Let us not forget the private investor. Although there is no exact figures on how much gold is held by the private investor you can see that prices for 1oz gold has increased dramatically these past few years. The price of 1oz gold in Jan 1st, 2008 was 833.70 USD, today (Aug 28th, 2010) the price is at 1241.15 USD. That is a 48.87% increase of value in almost 2 years.
Many know that gold is a good investment during difficult economic times and returns are very good compared to other asset classes. If the value of gold continues to increase will central banks want to hold gold? How about the private investor?
It is difficult to answer both questions but gold has been a commodity sought by many throughout the centuries and it has been proven to be a reliable investment asset in difficult times.
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