Gold Prices

How About Gold Prices Reaching $7,000 Per Ounce?

23
Aug0

Let’s discuss whether gold prices can reach $7,000 per ounce or not? This is the argument advanced by a New York Based Hedge Fund that says that analysis of the charts show visually how much the US Dollar has lost it’s purchasing power parity. The hedge fund is of the opinion that gold is cheap by a factor of 7.

Read this Investing in Gold Guide by Doug Eberhardt. This might be the best time to invest in gold. With Euro and US Dollar falling, gold prices are going to rise and rise. One way to invest in gold is to invest in gold mining stocks. Do your research, you can easily find junior gold mining companies that are poised to make the big move. Watch these Stock Market Mastery Videos that show how to spot profit pocket in any stock chart. Turn $200 into $100,000 in just 1 month with this Penny Stock Trading FREE Report that shows how to find killer penny stocks on the verge of making a massive move in the market!

Let’s consider the basis for these predictions so that we know how much possibility these predictions have of coming true. Most of the predictions are based on the highest price achieved by gold in the 1980s bull market adjusted for inflation. On the inflation adjusted basis, gold prices are 30% below their all time high of 1980s.

Whatever, this is a fact that China, India and Russia and other countries are changing their dollar based reserves into gold reserves. Gold is a very small market. The supply of gold is limited. Even a small interest shown in the gold market can skyrocket the prices. This is precisely what is happening. Now, this is all happening due to speculation. This might the best time to invest in gold mining stocks!

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Think You’ve Missed The Gold Rush?

26
Jun0

{Earlier|Before} this month, gold {prices|costs|rates} {hit|strike} an all-time high, {as the|since the} {yellow metal|gold} {fetched|increased} {more than|greater than} $1,240 an ounce. {Yet|But} gold bugs {still|even now} {think|believe} {the price|the cost} can {hit|strike|reach} {still|even} {higher|top} highs, {back|support} {to the|to} {nearly|almost} $2,000 per ounce figure hit {in the|in} {1980s|Nineteen Eighties}, on an inflation-adjusted {basis|base}. {That could|That may} spell {further|more} {gains|profits} for gold mining stocks {such as|just like|similar to} Barrick Gold (NYSE: ABX), Newmont Mining (NYSE:NEM) {and|plus|in addition to|as well as} AngloGold Ashanti (NYSE: AU). {To see|To determine|To view} where gold {may be|might be|maybe} headed, {we need|we’d like} {to {take a|have a} look|to have a look} back.

Ever {since the|since} {U.S.|United States} government moved to {no longer|then can no longer} back its currency in 1973 with gold reserves, there has {always|forever|for all time|at all times} been {a small|a little} army of {investors|people} who expected the Federal Reserve {to use|to make use of|to utilize|make use of|to try|to apply} its {unfettered|free} powers {of the|of a} printing press {to create|to make} {too much|a lot of} {cash|money|dollars} {and|plus|in addition to} {invite|call} {ruinous|damaging|harmful} inflation. And {with|in addition to} government {increasing|rising} its debt obligations {for each|for every} {of the|from} {past|previous} {ten|10} years, {there is|there’s} {real|actual} {reason|cause|purpose} for {concern|worry|fear}. {That’s|That is} {because|since} Uncle Sam will {eventually|finally|ultimately|in the end} {have|has} {only|just} {two|2 } {options|choices|alternatives} {to solve|to resolve} the {fiscal|economic|financial} mess. {Either|Whichever} {start|begin} {to generate|to come up with} {fiscal|economic|financial} surpluses {through|all through} {a combination|a mixture} {of higher|of upper} taxes {and less|and fewer} government expenditure. {Or|Or else} {accept|receive|take} higher {interest rates|rates of interest} on {any|every} future bond {offerings|choices}, {which would|which might} {likely|probably} {lead to|result in} the {rising|increasing|growing} inflation {that many|that numerous} gold bugs expect.

{To be|To get} clear, those inflation {fears|worries} {have not|haven’t} {yet|still} come {home|house|residence} to roost. {In fact|Actually}, inflation steadily declined {in the|in} {1990s|Nineteen Nineties} {and|plus} has remained {firmly|steadily} in check in this {last|previous} decade. {Simply|Just} {put|place}, gold {has to be|needs to be} {seen|noticed} {as a|like a} {hedge|protect} against “potential” inflation. And {since|while} gold has {risen|increase} {less than|lower than} $400 per ounce in 2002 to {more than|greater than} $1,200 {today|these days}, {it’s|it is|its} {fair|reasonable|fine} to {wonder|speculate|doubt} if {any|some} eventual spike in inflation has {already|by now} been accounted for. {In fact|Actually}, {the only|a common} {justification|good reason} for gold {to reach|to achieve} $1,500 {or even|and even|or just} $2,000, as some anticipate, {is if|is that if} inflation {not only|not just} rises but {starts|begins} to spiral {out of|from} control. {And that|Which} {just|now} {doesn’t|does not} {seem|look} likely {in a|in the} world where {many|several|various} central {banks|banking institutions} {have|has} {learned|educated} {crucial|essential|important} {lessons|instruction} {about|regarding} fighting inflation.

The {recent|current} {further|extra} {gains|profits} in gold are {coming|appear} from {other|further} {factors|aspects}. Unrest {in the|in} Korean Peninsula, {along with|with} economic {concerns|issues} in Europe, are {pushing|approaching} up gold {prices|costs}, decoupling the trade {from the|with the} long-standing inflation {fears|worries}. {If the|And {see if|check if} the} Korean {threat|danger|risk} abates, or European {concerns|worries|issues} {recede|move away|go back}, {so|thus} will gold {prices|costs}. {So|Hence} {this may be|this can be} {a time|a period} for {profit-taking|earnings} {for those|for all those} {buying|purchasing} gold {on the|in the} {rising|growing} inflation thesis.

{For most|For many} {investors|people|traders}, {it’s best|it is best} {to find|to get|to obtain} an {industry|business} {that|to} {appears|looks} undervalued {or|otherwise} overvalued, {and then|whereas} {find|discover|locate} the {company|business} {that is|that’s|which is} {best|good}-positioned {or|or else} worst-positioned for {growth|expansion|development|progress} ({depending on|based on} {whether|if} you are going long {or|or else} going short). But {in the|in} {case|situation|circumstances} of gold, {there are many|there are numerous|there are various|there are several} {other|further|new} {factors|reasons|conditions|things|situations} {to consider|to think about} {when you|whenever you} go long {or|or else} short {an individual|individuals} gold company, {including|together with} extraction {costs|expenses|expenditure|overheads}, hedging {strategies|techniques|methods|approaches}, {and|plus} {depletion|weakening} {rates|charges}. {You can|You may} {capture|catch} much {greater|bigger} upside {or|or else} downside, {and|plus} {avoid|stay away from} all those {other|extra} {factors|aspects}, by playing the {exchange-traded funds|etfs} {that often|that always} {employ|make use of} leverage {and|plus} {magnify|increase} {returns|profits} – {in a|in the} bullish {or|or else} bearish {fashion|style|way|trend}.

{For example|For instance}, the ProShares UltraShort Gold ETF (NYSE: GLL) bets {against|in opposition to|opposed to} gold, {rising|increasing} {or|or else} {falling|lessening} at {twice|double} the rate in {the opposite direction|the other way} {of the|from the|with the} {yellow metal|gold}. {During the|In the} {past|previous} year, that fund {has|have} {lost|gone} half its {value|price|cost} {in the|in} face of steadily {rising|growing} gold {prices|costs}. If {we|we {tend to|usually|are likely to|normally} } see {profit-taking|earnings} in gold, then this fund {should|must} {post|announce|put up} {a decent|an honest} {gain|profit}.

Conversely, if {you think|you’re thinking that} gold has {more|further} {space|room} to run {and|plus|as well as|along with} large government deficits will {inevitably|certainly} {result in|lead to} high inflation, then a Market Vectors Gold Miners ETF (NYSE: GDX) {might be|could be|may be|probably be|is likely to be} the play. Ofcourse, you {may|can|might|can|could} {also|as well} {simply|just} {acquire|purchase} gold {itself|by itself}, {and|plus} {tuck|put} it away {in your|in the} {safe|protected}-deposit box. {But|However} {you should|you can} {surely|certainly|definitely} {steer clear of|keep away from} any {television|TV} pitches {that|to} highlight gold’s {luster|shine}. {Most {of the|of} time|Normally}, these {firms|companies} {exist|be present} to {extract|take out|pull out} high {fees|charges} from {investors|people|traders}, lining the pockets {of their|of the} pitchmen.

Gold Market Monitor is a specialized newsletter for timing the Gold Market that shows its members the best time to invest in gold bullion or gold stocks and when to exit to the safety of cash. Start your 60-day trial to the Gold Market Monitor which uses an exclusive gold timing strategy to help its members safely profit from underlying trends in the gold market.

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Gold Prices Are Getting Higher These Days

20
Mar0

There are many different variables that can affect gold prices on a daily basis. Some of the most important ones being the strength of the US dollar and investor's sentiment with mainstream assets like real estate, stocks or bonds. History has proven over and over again that when the dollar and paper-backed assets flounder, the price of gold thrives because investors will flock to the metal in order to protect their hard-earned wealth from great losses.

The main cause for trading is speculation. There can even be different types of gold investors, such as people who store gold, people who include it in their portfolios, banks who maintain part of their deposit in gold, financial institutions, gold bugs, speculators, petroleum speculators and portfolio hedgers. In gold investing just as in stock investing, you should do fundamental and technical analysis as well as research before plunging into the market.

The price of gold is referred to as the spot price by investors, and the spot price is an important variable that fluctuates up or down, depending on the supply and demand for the metal. There are commodity exchanges around the world ranging from New York to Japan, and they are the ones that set the spot price lower when demand falls and higher when demand rises. There are precious metal websites that track live gold prices, so at any given moment you will know the price of gold.

Back in the late 1970s, when inflation had reached extremely dangerous levels in the United States, wise investors purchased gold bullion, gold bars and gold coins as opposed to buying the weakening traditional assets. It was fortunate because this higher investment demand led to the price of gold increasing more than 800% in just over a few years.

Right now, gold prices are currently at an all time high because the US dollar is weakened in value and oil prices are continuing to rise. The most perfect time to invest in gold would have been a few years ago and as late as last year. However, trying to time the gold market is not the best strategy for non-active investors. For non-active investors, dollar cost averaging is best. What this involves is purchasing gold in even increments over time, and the overall average cost of the acquisitions will go down as you purchase gold in high times, as well as low times.

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Options Trading Strategies-Commodity-Currency Spread And Carry Trading

21
Feb0

Take your Options Trading to the next higher level by trading with the pros at the Live Trading Labs. Turn $200 into $100K in just 3 months with this Penny Stock System. Win your FREE COPY of the High Velocity Market Master HVMM System ($2,997) by taking this quiz. Don’t forget to get your FREE copies of the Ultimate Day Trading System that can trade stocks, forex and futures and the Universal Capital Growth Trade Tool!Many currency traders don’t know much about options. Currency options are a highly profitable method to make money from a trend in the currency market. Many traders simply focus on spot trading. If you combine spot trading with currency options, you can multiply your portfolio return many folds. There are some currencies that are popularly known as commodity currencies. You can trade these currencies with commodities using options!

For example, South Africa is the world’s largest exporter of gold. Its currency Rand is intimately correlated with gold prices in the international market. When you find the spread between gold prices and RAND to be unusually wide and out of its historical relationship, you can simultaneously trade a gold call and a rand put in case the spread between RAND and gold prices is negative or the other way around.

Now, Australian Dollar (AUD) also has a strong correlation with gold prices as Australia is also a major exporter of gold in the world markets. Now AUD is one of the commodity currencies that you can trade with Reuters Commodity Index if you find the spread getting wider than the historical relationship.

Ever thought of carry trading. Many trader do it. You too can try it. Hedge funds are the expert in carry trading. One of their popular trading strategies is carry trading. You see noone want the money to sit idle without making any return. Carry trading is a nice way to profit with the interest rate spread between two currencies. You look for a currency pair that has one currency offering a much higher interest rate as compared to the other. You buy the high interest rate currency and sell the low interest rate currency.

In the last decade, Japanese economy was facing stagflation. This forced the Japanese Central Bank (JCB) to lower the interest rate to almost zero. So carry traders started selling Japanese Yen (JPY) and buying other high yield currencies like British Pound (GBP) or the New Zealand Dollar (NZD) that were offering a much higher interest rate. Now, carry trading like any other currency trading strategy is risky. The risk is of a sudden large drawdown when the risk aversion of the carry traders increases all of a sudden on hearing a breaking news.By taking put and call positions in the two currencies, you can hedge the risk of a large drawdown.

Now, in the last decade when JPY was popular with the carry traders, GBPJPY was one of the popular carry trading currency pair. But many carry traders faced larged drawdown by taking this carry trading position. If you know a little bit about spread analysis, you can study the historical correlation between the two currencies and accordingly take a put and call position to hedge against a drawdown!

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Secrets Of Trading Gold!

10
Feb0

Discover the High Velocity Market Master System that can trade gold, silver, crude oil, forex, futures, stocks, options, ETFs almost all market with the same suite of technical indicators. Turn $200 into $100K in just three months with this Penny Stock Trading System. Read the 40 page FRWC insider report on the potential of automated trading and how easily you can do it. Recently gold prices touched almost twelve hundred dollars per troy ounce breaching the historical barrier. Many people only think of stock as a way to invest. Recently people have also talking about currency trading. How about gold trading? In this article, I will show you how you can invest in gold. Gold investing can hedge your investment portfolio. Gold prices are expected to do much better in 2010. Though, you cannot rule out a temperary retracement but the trend in gold prices has been up for many years now. Now, gold is a commodity. Unlike other commodities like crude oil, coal, cotton, soybean, coffee, pork bellies or live cattle, you can easily store gold. Gold in storage over time appreciates in value. So one of the best ways to invest in gold is to buy it directly in shape of bars, bullions or even jewelry. You can wear gold jewelry and enjoy the status this gives while at the same time this gold jewelry can come handy when you want to sell it. You can even buy gold coins. Remember the time of yore, when gold coins used to be the universal currency. So direct investing in gold can be a good way to invest in gold. Now, try to invest in crude oil, coal, coffee, cotton or other commodities directly. First you will need a large storage hall for storing that commodity.

One of the easiest ways to invest in gold is to buy gold coins. Gold coins are better than gold bars as you can buy or sell them in smaller units. Most popular gold coins are the Gold Eagle (issued by the US Government), Gold Maple Leaf (issued by the Royal Canadian Mint) and Gold Krugerrand (issued by South African government).

As said before, people especially women love gold jewelry. Apart from that you can buy gold certificates. These are hybrid certificates that gives you the ownership of gold but you don’t have to take physical possession of your gold. Gold is stored in a safe location by the company, firm or the authority that issued the certificate.

Trading gold futures contract is what I like. Futures trading is interesting. You can profit from the volatility in the underlying assets. Gold futures is one of the direct methods to profit from the volatility in the gold market. But you need to know how to trade futures contracts if you want to do it. Futures trading is not difficult. There are some differences as compared to stock trading but you can learn futures trading by paper trading it first. The most popular futures contract is the COMEX Gold Futures. These futures contracts get traded on the New York Mercantile Exchange (NYMEX). COMEX Gold Futures are the most liquid gold contracts in the world. There are some traders who are specialists in trading gold futures.

The other is the CBOT Mini-Gold. This contract gets traded on CBOT and is popular for its smaller size that allows many retail investors to profit from the gold market plus you can trade it electronically on the CBOT electronic trading platform. Now many investors don’t want to mess around with gold futures! For them, Exchange Traded Funds (ETFs) offer a good investment opportunity in gold. There are two gold ETFs to choose from. One is the StreetTracks Gold Shares. This fund is a good way to profit from gold without actually owning it. The other gold ETF is iShares COMEX Gold Trust. Now both these ETFs track the gold prices in the spot market making their performance almost identical most of the time.

Another method to get exposure to the gold is by investing in gold mining companies. A few popular gold mining companies are Barrick Gold Corporation, AngloGold Ashanti Limited and other. Newmont Mining Corporation is one of the largest gold mining companies in the world!

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