Gold has been one of the most hated commodities in the world since it peaked in September 2011 at $1923.70 an ounce. At that time, the precious metal was upgraded by J.P. Morgan Chase to $2500 an ounce. As many of you already know, when a major firm upgrades a stock or commodity at an extreme high it is usually a top in that market. Today, the price of gold is trading around $1222.00 an ounce. Last week, gold traded as low as $1181.40 an ounce which was a fresh new two year low. Many so called professional traders and investors now believe gold is going to decline further because the economy is improving and the Federal Reserve is going to start to taper its $85 billion a month QE-3 program. But, here are three reasons why gold might be bottoming right now. 1. The sentiment for gold is as bearish as it has been for years. If you watch CNBC you hear almost every guest talk about how bearish they are for the precious metal. They will list all of the reasons why gold should go lower. Even the famous hedge fund manager John Paulson seems to have thrown in the towel on gold after taking big losses over the past two years. When this happens it is often the sign of a bottom. When the crowd and a stock market whale leans so strongly in one direction I want to start looking the other way. 2. Gold is real money. Over the past five thousand years the world has viewed gold as money, however since President Nixon took the United States off of the gold standard in the 1970's it has been viewed as a useless relic. Why then do central banks around the world own gold? Remember, gold cannot be printed. Gold is not magnetic, and it is also the greatest conductor of electricity. So believe me, it is not a useless relic, it has many uses. If gold was a useless relic why do you think President Franklin Roosevelt confiscated it from the U.S. citizens in the 1930's? Central bankers around the world continue to print paper money (fiat) at an alarming rate. This is happening in the United States, China, Japan, England, Europe, and of course Zimbabwe. 3. The current pattern on the charts is suggesting a potential bottoming pattern is forming in gold. The commercial money is only slightly bearish at this time. Last year, the commercial money was heavily bearish on gold. Remember, the commercial money is always early to the party and could be accumulating at this time.
Confused. I thought the United States was the only country that could print endless amounts of money because they're the world currency. No? I'd like to buy gold; I'm just not sure of the best way to go about it.
I wouldn't touch gold just yet however if you do want to get into gold do not buy physical gold buy something like GOLD - http://finance.yahoo.com/q;_ylt=Aqa...b2&fr=uh3_finance_vert_gs&type=2button&s=gold
I always own at least a little gold via ETFs. I've been buying more of it since it sold off big from $1900 to $1100. http://etfs.morningstar.com/quote?t=gld
Gold has fallen for about two weeks straight. It is now into a solid support level. This level is not only a gap fill on the SPDR Gold Trust (NYSEARCA:GLD) but also the 20 and the 50 moving averages. These two moving averages make up a necktie, which is a strong technical support level. The signals are saying a bounce in gold is coming. This is a short term trade, not a long term investment. Lock and load. Gareth Soloway InTheMoneyStocks
Gold rebounded on Tuesday from a one-month low hit in the prior session, helped by short covering and a rise in bullion-backed exchange traded fund holdings. In terms of ounces, the holdings are at their highest since December.
Gold is such an interesting investment because it represents so much. Silver is much more of a commercial market and it's amazing to me how difficult it is to predict gold prices given the multitude of factors present. I don't invest in gold anymore for this reason but I thought your points were interesting.
I have burnt my fingers with gold before and tend to be careful with this type of stock. It does look as if there will be some sort of short term recovery in the price. The big question is whether gold will continue to recover or if the prices will break the $1000 level? Personally i think that you can make some short term profits but i would not invest in gold just yet.
It's an alternate form of currency and for me a hedge against inflation and certain disasters that may or may not happen.
Am I correct in that the US dollar is not backed by gold? I thought that America could print as much money as needed? Gold will always be worth money because it is considered a luxury item, but I have noticed that it does go up and down in the market. Silver is popular, so why is it not worth as much as gold? I am new to the stock market, so any advice or information would be quite useful to me.
