Tag Archives: gold price

Since 1999 the gold price has moved in concert with the growth in the US Federal Reserve Balance Sheet including the recent correction in both during the past three years. Accordingly, the following objective analysis forecasts the gold price out to 2016 based solely on historical Central Bank data.

The consensus amongst analysts is that gold is grossly under-valued in view of its bullish fundamentals and now presents a once-in-a-lifetime opportunity for millions of investors worldwide who wanted to own gold but were heretofore leery of its lofty price. Below are 9 fundamental factors behind these bullish opinions.

The smart money has been moving into precious metals during dips in recent months as many view the sector as one of the last places to find real value given that stocks, bonds, real estate, and nearly every other asset class, has been inflated to lofty levels by the FED's easy money policies since 2009. I believe we are witnessing one of the last great buying opportunities in precious metals. When prices start moving higher again, there will be little time to jump aboard the train. The downside risk at this juncture pales in comparison to the upside potential.

No one can outguess the elites' sustainability of power and control over the entire financial system, including their influence over the price of gold, and, as such, this precludes anyone from being able to intelligibly articulate "when" there will be a transition from "down" to "up" in the price of gold and silver. Unfortunately, as things currently stand, the elites continue to win the majority of the battles, and so control the war. Let me explain why that is the case.

I see various signs that indicate that gold bulls may have to endure one more capitulation to the downside before the next leg of the bull market begins. In what follows I identify what could send the gold price lower and suggest some investment strategies to consider.

Despite continuing QE and huge government deficits the price of gold has fallen 35% since its peak in 2011 and is down over 10% from its highs this year. Is there a logical explanation for this?I think there is. Read on.

An analysis of the ratio between the market capitalization of gold (MCG) and the gross world product (GWP) over the past 63 years suggests that the current price for gold has further to fall and that it would not be wise to begin buying gold until prices have fallen below at least $1100 or $950.

...When the USD starts to rise many assume that this is negative for paper gold ETFs such as GLD as well as physical gold. I'm sure you have heard it before, if the USD goes up then gold goes down, and vice versa...but, in reality, this "rule of thumb" isn't the case and, in actuality, it would be impossible for the USD and gold to trade inversely with each other. Let me explain.

Many gold bugs hold out hope that any day now, gold will resume its march upward to $2,000, then $5,000 and then $10,000 per ounce. In answer to the question “How can anyone reasonably calculate what the value of gold is?” I want to put forth in this post a possible model for doing just that. The purpose of the model isn’t to say where gold will go but to look at the underlying factors that drive the price of the precious metal.

Gold, like any merchandise, changes price according to supply and demand. In this article, we look at the supply and demand to understand where the gold price is possibly heading.