Eve wrote:
> So...who/what's driving the price of gold DOWNward????
Hi Eve,
This is the pause that refreshes.
The main reason gold went up was a reduction in hedge books by major producers. The
industry is currently short about 97 million ounces of gold from forward sales and
option
writing.
This is resulting in substantial losses for more than one quarter. The dollar has
weakened against the euro and other major currencies as a consequence of the dollar
being
overvalued. The US trade deficit is still exerting downward pressure on the USD. But
also because of investor pessimism in the US. But most of all, the difference this
time is the
USD is no longer a safe haven for foreign investors. Gold is.
Many with short positions expect gold will lose favor in its rivalry with the dollar
in the safe haven stakes by year-end. The dollar is trying to get bolstered by the
Federal
Reserve Board
On My Gold stock pick page. The few Gold Equity stocks we have always recommended
have performed dramatically and only by mid year. The Best performer saw (Ticker:
SEABF ) The
Best performing precious metal Gold Equity Stock, with a half yearly change that was
up over 664%.
Therefore to purchase a gold stock like this now can be risky. This drop in the gold
price is the pause that refreshes. The question is, Time to Take profits or sit tight
in hope
of further gains?
Any time gold is trading at a price less than 12–to–1 to the price of oil, it's a
bargain,
nothing is ever said about this phenomenon. Gold's very identity is undergoing a
seismic shift perhaps not seen since the 1970s when the United States stopped pegging
the dollar to
gold and began allowing private ownership of it. The metal's value now is more
affected by speculative trading, increasingly complex hedging programs, and foreign
exchange rates in
the global, electronic economy.
Stay the course, maintain your heading, start funding you e-gold account while the
tick is paused and lock in those gold bullion prices.
Kind Regards
Mark S. Öhberg
http://www.kiac-usa.com
http://two-cents-worth.com/?107245&EG
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