27
Feb
2009

Gold Investments Market Update – Gold at $1,200/oz Likely as Central Bank Supply Dwindles on Fear of Contagion

Gold’s correction continues and it has fallen for four days in a row now but the long term fundamentals remain very sound.

Bargain hunters are likely to reemerge at these levels which should be supportive.

Gold remains up more than 7% so far this year (in dollar terms as per table and much more in euro and sterling) and continues to significantly outperform battered stock markets.

Continue Reading
25
Feb
2009

Gold Investments Market Update – Gold Production in South Africa Plummets 13.6% to Levels Last Seen in 1922

Gold fell yesterday on profit taking and ended the day down 2.3% at $969.25/oz (silver fell by 3.1% to $13.98/oz).

A short term correction was expected and warned of and this correction was necessary after gold becoming overbought in the short term. Gold had rallied over $100 (from $890/oz on February 9th to just over $1,000/oz on February 20th) or some 12% in less than two weeks.

Continue Reading
24
Feb
2009

Gold Investments Market Update – Gold To Remain in Bull Market Until Interest Rates Rise Significantly

Gold and silver remained resilient yesterday (gold slightly lower; silver slightly higher) despite the continual wave of mini tsunamis shaking the global economy.

Continue Reading
23
Feb
2009

Gold Investments Market Update – Dow/Gold Ratio of 1:1 or 2:1 in Coming Years?

Gold has given up some of last’s weeks very large gains and is down 0.6% after Asian and early European trading. With gold up some 13% so far in 2009, some correction and consolidation may be necessary prior to overcoming resistance at $1,000/oz.

The inverse correlation between stock markets and precious metals was seen again last week as gold and silver surged by over 6% while most major stock markets were down by some 6% (S&P 500 was down by 6.8%).

Continue Reading
20
Feb
2009

Gold Investments Market Update – No “Gold Rush” or “Gold Fever” Despite the International Financial System being Close to Collapse

Gold has rallied strongly again this morning and is up 1.5% at $990/oz after consolidating around the $975/oz mark yesterday. Stock markets are under severe pressure again this morning after yesterday’s 7 year low close for the Dow Jones.

There is a risk here of a panic sell off in stock markets and the next leg down in the stock bear market looks imminent as the ills of the global financial system virulently infect the global economy.

Continue Reading
18
Feb
2009

Gold Investments Market Update – Russian Central Bank, Asian and International Demand Push Gold Towards $1,000/oz Again

Increasing fears of a global recession and possibly even a depression, saw gold rise another 3.2% (silver was up 4.5%) on increasing international safe haven demand. Markets participants are realizing that while sharp deflation is the challenge today, in a few months we may be confronted with an even greater challenge in the form of stagflation and possibly even mild hyperinflation.

The World Gold Council have reported that demand for gold rose 29% in the last year.

Continue Reading
17
Feb
2009

Gold Investments Market Update – Gold Set to Surge Past Record Nominal High Over $1,000/oz Again on Very Significant International Demand

After another strong week last week (both gold and silver were up some 3%) despite falling stock markets, gold continues its outperformance of other asset classes due to safe haven demand.

Continue Reading
17
Feb
2009

Quantitative easing: Classic case of treating the symptom and not the patient

The answer to this global credit debacle is transparency. There are enormous sums of investor money waiting in the sidelines. The reason they have not been invested yet is due to a lack of transparency within the balance sheets of those institutions that constitute the global financial landscape. Make no mistake; capital needs to be deployed in order to create a return. With such uncertainty surrounding the global capital markets it is entirely normal that investors would pull back until a sense of clarity itself develops.

Continue Reading
13
Feb
2009

Gold Investments Market Update – US, UK Credit Ratings Look Set to Be Downgraded

Gold rose again yesterday, briefly rising above $950/oz and was up 0.6% on the day. Determined selling on the open in Asia saw gold fall and profit taking has seen gold fall in Asia and in early trading in London. This is to be expected as gold had risen by more than 15% in less than a month.

Continue Reading
12
Feb
2009

Gold Investments Market Update – Gold to Reach $5000/oz According to Respected Goldcorp Founder

Gold surged a further 3.3% yesterday to $942.45 (as did silver) as worries about the US and global financial system and economy continue to grow and governments print money on an unprecedented scale to combat the economic crisis.

Continue Reading