Gold Prices Rise and Fall
Canadian Stocks Rise as Italian Bond Yields Fall; Banks Decline BusinessWeek Gold stocks rallied this week after the US Federal Reserve said it plans to keep interest rates at historical lows until at least late 2014 and the US dollar retreated. Raw-materials companies make up 21 percent of Canadian equities by market value, ... |
White-hot gold gets big boost from Bernanke InvestmentNews Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades. Nine of 15 surveyed by Bloomberg ... |
Gold shines as low-interest era dulls prospects of other investments Vancouver Sun Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades. Nine of 15 surveyed by Bloomberg ... |
 ETF Daily News (blog) | Who's Buying? A Look At The Stealth Rise In Gold Prices ETF Daily News (blog) At yesterday's open, gold was trading higher than $1726. So what happened? How did this “stealth” rise in gold happen? Governments have secretly been boosting their gold buying. While we were tracking how quickly the euro is disintegrating, ... |
 Financial Post | Gold bulls ascendant amid biggest rally since 1980 Financial Post Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades. Nine of 15 surveyed by Bloomberg ... |
Big Majority Of Survey Participants See Higher Prices For Gold Next Week Forbes A heavy majority of participants in Kitco News' Gold Survey this week expect prices to rise as some technical indicators have turned positive in the short-term and after a dovish statement by the Federal Open Market Committee meeting on Wednesday. |
Gold Bulls Continue to Charge Amid Biggest Rally Since 1980 Moneynews Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve's pledge to keep interest rates low until late 2014 will extend the metal's best start to a year in more than three decades. Nine of 15 surveyed by Bloomberg ... |
 International Business Times | Gold's Inter-market Relationships Change International Business Times Gold has been losing its safe haven status to US treasuries with the yellow metal prices falling substantially from the all-time high and treasuries staying steady. In times of crisis and inflation, gold prices shoot up along with treasuries and the US ... |
Top Ways You Can Buy Gold for Investment ClimbTheNet Gold bullion, ie gold coins and gold bars соmе in vаrіоus sizes аnd weights. Before investing іn gold, уоu need tо study the current prices оf thіs metal, aѕ well aѕ the trend оf thе rise and fall іn gold price in the past. You wіll alsо hаve to follow ... |
Gold and Silver Set to be Currency War Winners BullionVault That, along with weaker economic growth forecasts, saw long-term bond yields fall. And when yields fall, prices rise – so bond market investors were happy. While Bernanke didn't announce QE3, he said it remains an option. Interest rates aren't going ... |
Why the Price of Gold Rises and Falls
Gold is a safe haven from the world crisis that is slowly diminishing faith in financial and monetary systems. History has proven that gold has always been money that holds its value in time of trouble. As the U.S. dollar devaluates along with currencies throughout the world, inflation will eat up your paper money much faster than your pay raises can keep up with inflation. Since the gold windows of the United States were closed by Richard Nixon in 1971, gold has been able to adjust its price in the world markets. While there are different reasons for golds price variations, driving forces of fear and inflation has always pushed up the price of gold.
Looking around at the financial markets today, we see fear has driven the price of gold from around $300 an ounce in the year 2000 to a high of around $1900 an ounce in 2011. The majority of economist never saw the problems coming that are plaguing the world economies today, which in turn are driving up the price of gold. So what drives the price of gold down, you might ask? Supply and demand. As economies get stronger, so does their currency. Gold drops in price when inflation goes away and financial markets stabilize. Investors sell their gold when this happens and invest their money in financial markets that now make profitable gains. This increases the gold supply which can stabilize gold prices and possible drive gold prices down. At this moment, China, India and Russian banks are buying huge amounts of gold. The U.S. and European economies are declining because of problems that may take years to resolve. Gold has and always will be the safe haven during these times of economic troubles.
The Asian banks know what is coming and even though gold prices today are at their highest levels we have seen to date, this has not dettered their banks from buying massive amounts of gold. So, what drives the price of gold up? Again, supply and demand.
How much gold has already been mined and how much more gold can be extracted to keep up with the supply and demand? The fact that one ounce of gold sells for well over $1600 today can help shed some light on the amount of gold available to the world markets. Gold mining companies agree that it takes about $800 for them to produce one ounce of gold. Statisticians have deducted that all the mined gold available today in the world can fit into a 20 meter cube; that is roughly 65 feet high, wide and deep. If that is all the gold there is, then, what will happen to the price of gold, is our economies will sink further into the abyss.
Printed money is basically an I.O.U. furthermore, history has shown that printed currency devaluated or even became worthless in times of financial turmoil. Gold will fluctuate up and down in the short run, but in the long run, gold has steadily outperformed stocks since the mid eighties. The fact is gold has gone up 50% since 2010.
The financial world crisis is so complex and disruptive that governments around the world are scrambling to find solutions to problems that took years to develop and will take years to correct. The steady rise in the price of gold is directly related to these ongoing world problems.
Buy gold now and benefit from the rising value that will see further unbelievable gains in the coming years.
Investing in SILVER
Silver has always been a source of money since ancient times and has followed it's big brother gold, as demand dictates its price. Inflation and fear of financial markets have been key to rising silver prices, while global market stability drives down silver prices. The outlook for silver prices are changing to more positive gains, as the stock market and economies volatile swings are sending investors scrambling to other safe havens in order to protect their money.
The price of silver gained 66% in the year 2010 and out performed gold. Industrial use of silver also rose 18% in 2010. The industrial demand has put pressure on the supply of silver and mining operations are hard pressed to keep up with investment and industrial demand for silver.
As the world's economies fall deeper into uncontrolled debt, the paper currency glut will lead to inflation. This event will