Will they taper won’t they taper? That is the question. Meanwhile gold, together with silverand the PGMs suffer whichever way the wind blows. The analysts employed by the big banks are calling for a fall at anywhere between $1200 and $1000 an oz. over the next few months. Another doomsday prediction is that the Chinese […]
Only fifteen days ago gold sank to $1265 an oz on the spot market. Prior to that many of us felt that gold had sustained a floor at $1300 and that this would be a kick off point for the next upward trend. It was not to be! In fact many of the leading analysts, Morgan Stanley amongst them, were predicting gold to fall below $1200, even down to $1100 an oz. In the last fifteen days gold has risen to over $1350 an oz. that is ninety dollars, at the time of writing.
Silver fell back to $31.40 an oz at midday EST following its 80 cent jump yesterday. Looking back over the quarter, silver has disappointed in its inability to sustain a rise beyond $32 since peaking at $34 at November’s end.
Historically, platinum has mostly traded at a premium over gold, in fact only three times in the last twenty five years has the position been reversed. However back in July last year the metal was priced at near enough $160 under gold, the most it has ever been. This despite the ongoing labor problems in South Africa that continue to this day.
If you are among the increasing many that are losing faith in fiat currencies such as the US dollar, the Euro or the GB Pound and have some cash stashed in a bank, you have to be thinking of the alternative ways of preserving your wealth.
Will they taper won’t they taper? That is the question. Meanwhile gold, together with silverand the PGMs suffer whichever way the wind blows.
The analysts employed by the big banks are calling for a fall at anywhere between $1200 and $1000 an oz. over the next few months. Another doomsday prediction is that the Chinese are not buying at the rate they were the last time gold slipped down to the $1260/$1280 range. Never mind that they are now overtaking India as the worlds largest buyers and are set to better last years purchases makes no impact. Right now there is the prospect that gold will fall flat on its face.
During the last few months we have frequently urged our readers to look out for pull-backs in the gold and silver spot prices and then take the opportunity to increase their exposure to these metals with any spare cash that they may have.
Of course we appreciate that it is a rare occurrence for the ordinary ‘man in the street’ small investor to catch the bottom of a market downturn when buying but there are ways and means to avoid making a buying decision that may turn out to be an expensive error of judgement for those with limited investment funds, so leaving them short of cash when they next spot a potential winner.