Gold prices will continue falling throughout 2015, due to its inverse correlation to the dollar. As the USD rises gold falls. The dollar can only rise in the current environment of world trade. The shale oil revolution occurring in the U.S. will lead to the U.S becoming a net exporter of millions of barrels of oil the end result of this will be an ever increasing demand for U.S. dollars to settle these purchases. The world needs dollars to pay for our oil. Demand for U.S. dollars pushes the USD higher, and hence gold keeps going down in value.
I would have never figured it out that way...thanks for the insightful nugget there SamClemensMT...i just wish i hadn't quit my binary trading site...i'd have mint money like crazy
I wouldn't bet the ranch either way on any one scenario. Short term predictions can bite you in the ass - lots can happen.
I would say to a point. It's still a "state of the world" hedge, whereby if the world really goes to the dogs it's where the money will flock to. So while declining oil prices are good to some parts of the economy (airlines, the consumer etc), if it overshoots you'll still see a negative impact in other areas (a sharp decline in revenues in oil-based industries and countries, which will have an impact on capital investment and government spending). Slowdowns elsewhere in the global economy could force macro shocks and a flight to gold. It's another theory anyway.
We can make predictions, but it's really hard to tell what is going to happen because in fact the ones that are pulling the strings have their own agendas and we never know what's on those.
We're all very good at making predictions. Unfortunately, that's just us trying to make order out of chaos. None of us really have a clue. For all those guesses we get right and are happy to trumpet, there will be many that we certainly missed the mark with and will ignore. That's the name of the game.
The standard recommendation is 5% of your assets should be dedicated to precious metals. Regardless of whether the price of silver or gold is up or down a serious investor will continue to dollar cost average. Keep adding to your position with the cash you've allocated to do so.
At some point the dollar's will stop appreciating. That would mean gold prices will remain unchanged for a little while before they steadily begin to go up again. I think gold still is the one investment that you are certain, guarantees you won't lose all the money you invested anytime soon.
