GoldCore News

Gold Investments Market Update – Silver to Continue to Outperform Other Assets in 2009

Gold fell yesterday on a bounce in the dollar and renewed weakness in the oil and commodity markets. While gold has clearly decoupled from oil and commodities in recent weeks, due to its safe haven currency credentials, oil and the commodities can still effect gold’s performance in the short term. As can weakness in stock markets. Gold trading on the COMEX in the US opening hours has been increasingly correlated with stock markets in recent weeks and months . This correlation with stock markets is however of a short term nature as can clearly be seen in gold’s outperformance of equity markets in recent months and years. The volatility in currency markets is huge and the dollar has rebounded strongly in the last 24 hours (from over 1.47 to back to 1.40 ) which is putting pressure on gold as is the weakness in stock markets. However, the stock market weakness and very uncertain outlook for 2009 will lead to further safe haven demand. Silver to Continue to Outperform Gold and Other Assets in 2009 Silver has fallen sharply in recent months but will still outperform all major equity indices in 2008. This is quite an achievement especially given the fact that silver has surged in value in recent years and particularly in late 2007 and the start of the financial and economic crisis.

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Gold Investments Market Update- Solvency of UK and US Plc Now Under Threat

Gold's safe haven credentials have been reaffirmed in recent days as the dollar's safe haven appeal is increasingly being questioned (see News and Commentary section of homepage). The scale and speed of the decline of the dollar (and to a lesser extent, sterling) in recent days is unprecedented. The dollar has fallen against all major currencies but especially the euro.

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Gold Investments Market Update – Dollars Are Free – Gold to Become More Expensive

The surprise move by the Fed to lower the Fed funds rate by more than 75 basis points to a record low and an unprecedented band between 0.25% and 0% led to sharp falls in the dollar (low of 1.4188 to the euro) and a spike in the gold price to over $859.40/oz. The Federal Reserve has embraced 'Helicopter Bernanke's' "inflate or die" massive reserve and money creation academic theories in an attempt to prevent deflation. Markets realise that this will lead to a lower dollar and higher gold prices in the medium and long term.

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Fred Thompson explains the bailout (satire)

 

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Gold Investments Market Update – Gold To Remain in Bull Market While Counter Party Risk is Elevated and Interest Rates Remain Low

Gold rose again yesterday and the dollar fell sharply in anticipation of the Federal Reserve further slashing interest rates to record lows of 0.5% today. In a desperate bid to prevent a recession deepening, the Federal Reserve is prepared to slash interest rates to an all-time low near 0% today. With ZIRP (zero interest rate) policies, the US and global economy and monetary system is entering unchartered territory which is leading to continuing safe haven demand for gold.

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Gold Investments Market Update – FT Reports that Counter Party Risk May Lead to Potential Squeeze in Gold Market by End of Year

Gold rallied sharply last week and was up nearly 9% despite continuing uncertainty and a very mixed performance in stock markets. The US dollar index fell some 4% on the week and it looks increasingly likely that the dollar may have topped out and may soon resume its bear market.

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Gold Investments Market Update – PwC Finds ‘Gold is Serving Its Purpose as a Hedge of Wealth in Uncertain Times’

Gold rallied sharply yesterday, for the fourth day in a row, on sharply higher oil prices (some 10%) and a weaker dollar. Gold gave up some of its gains overnight in Asia as the dollar bounced after recent sharp losses in volatile trade. Gold’s rally yesterday had nothing to do with an increase in risk appetite. If that was the case, why have stock markets internationally been falling sharply again in recent days and yesterday?

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Diamonds and Jewelry as “Rock Solid” Investments

There have been a spate of articles in the press recently including the Personal Finance section of the Irish Times touting jewellery and diamonds as safe haven “rock solid” investments. Rock solid investment Looking for a rock-solid investment? A girl's best friend and a smart way to invest This is dangerous nonsense and irresponsible journalism of the highest order. Investors have lost enough money in recent years due to appalling investment “advice” regarding equities and property and it is important they do not compound that by “investing” in diamonds and jewellery. As ever real diversification in all asset classes is essential.

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Gold Investments Market Update – Money Printing Favour Hard Assets such as Gold over Paper Currencies

Gold rallied sharply yesterday, for the third day in a row, on higher oil prices and a weakening dollar.

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Gold Investments Market Update – Deflation Now But Significant Inflation in Medium to Long Term

Gold rallied for a second day yesterday on concerns regarding the deepening US recession and the dollar. Gold has continued to rally in Asian and early European trading. The bounce in oil prices is likely lending support as is continuing robust physical demand internationally. Asian equity markets were largely positive overnight but European ones are again under pressure this morning. The global deflationary spiral appears to be accelerating as are desperate attempts by politicians and central bankers to reflate their way out of the recession.

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Gold in Backwardation; talk of a run on the COMEX

It wouldn't be suprising if you had never heard of backwardation. Though many commodities markets are frequently in backwardation, especially for seasonal or perishable/soft commodities, it has only happened twice in history in precious metals.

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Gold Investments Market Update – South African Gold Production Continues to Fall Significantly – From over 1000 Tonnes in 1970 to 272 Tonnes in 2007

After falling sharply last week, gold rallied yesterday on the back of a weaker dollar, higher oil (Light Sweet Crude Oil Future - Combined - JAN09 is up more than 6% yesterday after falling an incredible 25% last week) and commodity prices and the Obama fiscal stimulus package. The economic recession will get significantly worse before it starts to improve, US President-elect Barack Obama said in an interview at the weekend.

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Gold Investments Market Update – Citigroup Report: Gold Holders “Mellow” for Years; Holders of Other Asset Classes Increasingly “Yellow”

Gold and silver were flat yesterday and have remained unchanged in Asian and early European trading. Gold is set for a fourth straight week of gains on safe haven demand and on the likelihood of further dollar declines with further reductions in U.S. and international interest rates and further quantitative easing next month. Euro gold and British pound gold remained firm at €633 and £529 after recent gains.

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Gold Investments Market Update – Citigroup Says Gold Above $2000/oz Next Year as World Unravels

Both gold and silver fell slightly yesterday as the dollar and stock markets rallied on renewed increasing risk appetite. Euro gold and British pound gold remained near record highs of €628 and £532. Gold has traded sideways in Asian and early European trading despite the horrendous terrorist attacks in India.

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Is the Great Bear Bullish on Gold?

On the foot of recent reports that China is planning to diversify some of its massive foreign exchange reserves into gold, The Central Bank of the Russian Federation has released its latest

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Gold Investments Market Update – Gold up 10% in Euro and 26% in Pounds in 2008

Gold was largely unchanged yesterday after rallying to as high as $830 and has traded sideways in Asian and early European trading. Open interest levels in gold and silver on the COMEX have fallen to extremely low levels showing that nearly all the speculative froth has been liquidated and remaining longs are "strong hands".

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Gold Investments Market Update – Gold and Stocks Rally for Different Reasons

Gold has given up some of yesterday's and the last four days' gains. Profit taking seems the most likely explanation as the dollar remains largely flat but the weakness in oil may be contributing to gold's weakness. Continuing unprecedented volatility in markets is leading to further safe haven demand.

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Gold Investments Market Update – Gold Smashes through Resistance

Gold gains 6% in one week In a remarkable week for the yellow metal, strong resistance at $770 last Monday may now be the level of support as Gold rallied on Friday, finishing up $50 on the day, 6% on the week.

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The Bailout Squared (Comic)

  Or is that Bailout to the power of Bailout?  

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Gold Investments Market Update – Gold Shows Its Mettle

Gold maintains its safe haven status In an increasingly risk averse environment and in the wake of tumbling commodity markets, gold is maintaining a bid, albeit in a tight trading range with strong resistance at $777 , confirming its status as a safe haven asset. Gold is currently trading at $755 (12:15GMT).

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