First I would like say Happy Belated Thanksgiving! Yesterday was great for me and the family with all of us still recovering from extended food comas. That recovery, unlike the impending gold price recovery, is likely to be short lived as we have lots of leftovers!
Okay, enough about me, let’s take a look at what has been going on this week in the world of gold. I will list a ton of sources below that discuss various items from the increased hoarding by various central banks around the world to forecasts from sources well known and “underground”. At the end, please leave a comment about any of the sources I list or about anything you want. Here we go:
Bullish on Gold
- Gold and Silver Price Rally Imminent – Gold prices are on the verge of a significant breakout. But it’s not because the U.S. national debt just passed $15 trillion, Europe’s about to announce its next doomed-to-fail bailout plan, negative real interest rates, or anything that will keep gold headed much higher in the long run. . .
- The Gold Triple Play – Volatility, Currencies and Europe - Resurgent investment lifted global gold demand 6 percent from the previous year to just over 1,000 tons during the third quarter of 2011, according to the latest Gold Demand Trends Report from the World Gold Council (WGC).* The potent cocktail of inflationary pressures in the emerging world and the European sovereign debt fiasco left investors searching for a safe haven—they looked for it in gold. . .
- Gold House Price Ratio Falls To Historic Low - In gold terms, an average single family home in the United States can now be purchased for only 18% of its pre-bubble price in 2001. The term “pre-bubble” merits emphasis: the average house can be purchased at an 82% discount (in ounces of gold) not from the peak real estate values of 2006, but the much lower home prices of 2001, before the real estate bubble began. . .
- St. Barbara Expects Gold Prices to Stay Strong for Some Time - St. Barbara Ltd., an Australian gold producer, said it is focused on reducing costs amid forecasts for the price of the metal to “remain strong.” . .
- Gold Demand Hits New Record With Central Bank Buying Up Sixfold - Gold demand in the third quarter of 2011 reached 1,053.9 tonnes, an increase of 6% compared to the same period last year. This equates to $57.7 Billion, an all-time high in value terms. . .
- High prices, unexplored land create new lust for Alaska gold – Industry leaders don’t expect a gold rush, the likes of which this still-young state hasn’t seen in nearly a century, with hordes of miners looking to make their fortune. That’s because these days making it big — finding and developing a large prospect — can take years, if not decades, and billions of dollars in investment.
- Gold in India’s coffers makes government richer - India’s gold holdings have surged to an all time high. The value of gold in the Indian government’s kitty has grown by over $19,353 million (Rs 1,00,000 crore) in a short span of two years. The sharp rally in the price of gold has helped bolster the overall value, as has the 200 tonne purchase by the Indian government from the International Monetary Fund (IMF) in November 2009.
- Gold Prices May Reach $3,000 in 2-3 Years: Analyst - Though gold prices are falling because of negative economic news from Europe and the U.S., a number of analysts believe the price of gold will recover from its current dip and rise as much as 90 percent in the next two to three years.
Bearish On Gold
- On the Verge of Another Gold Price Drop? – Traders are driving prices down in the knowledge that many positions are geared (leveraged) and exposed to margin calls. Other positions are protected by ‘stop loss’ instructions, so can be triggered by prices moving down through support levels.
- Is Gold Still Considered a Safe Haven Investment? - I recall that the last time gold price sharply rose was back in August when the markets stirred up over the U.S. debt ceiling debacle which was followed by the S&P’s downgrade of U.S.’s credit rating. Back then gold price reached a record high of nearly $1,900 the U.S. treasuries yields also fell precipitately as the anxiety level in the markets rose, traders became risk averse, American stock markets plummeted and the demand for safe haven investments was high.