Commodity Trade Mantra

Posts Tagged ‘Gold Investor’

Can You Guess the US Election Winner? It's Obviously - Gold

Investors are on edge…and we can’t blame them. The S&P 500 has fallen nine straight days. Safe-haven demand maybe set to rise as the US election is now just days away. Unlike past elections this one appears to grown more uncertain and fraught the closer it gets. There’s one certain winner of next week’s presidential election, according to HSBC: Investors in Gold.

A More Robust Understanding of the Price of Gold & Gold Valuation

A combination of a top-down and bottom-up approach is required to develop a more robust understanding and valuation of gold. Certain inputs put together, this recommended framework allows investors to use current variables and easily available economic forecasts to form a consistent, self-contained and intuitive view on the price of gold.

Bull Market in Gold Driven by Massive Gold Investment Buying

After shunning prudent portfolio diversification with gold for years, investors are finally starting to reestablish those essential positions. And since their collective gold holdings were so incredibly low heading into 2016, reflecting hyper-bearish sentiment, the gold investment buying has only begun. It will likely take years to complete, driving gold’s new bull higher on balance the entire time.

What Drives the Price of Gold? Myths About Gold That Just Won’t Die

A number of gold’s fundamental price drivers are currently gold bullish or in the process of turning bullish, and others are not, or at least not yet. However, the great monetary experiment that central bankers have launched is certainly a very good reason not only to hold gold, but to actually overweight it relative to other assets – especially after it has already corrected quite a bit from its 2011 peak.

Real Interest Rates have a Real Influence on Gold

Does gold respond to the inflation or rather to the real interest rate? Paul Krugman said once that the reason behind the high real price of gold between 2001 & 2011 was low real interest rates, not the expected inflation. Is he right and are real interest rates really the main driver of the yellow metal price? How do they affect the gold market?

Positive Correlation Between Economic Growth And Gold Demand

Conventional wisdom holds that good economic times are bad for gold. But over the longer term, economic growth tends to be good for gold. Gold demand in India & China is closely correlated to increasing wealth. The 2008-2009 financial crisis spawned the tail-risk hedge; To protect investors from sudden, hard-to-predict market crashes.

Is This The Right Time To Get Into Gold?

Despite what is likely to prove short term weakness, the smart money is gradually accumulating gold on the dips. Dollar cost averaging remains prudent for buyers who wish to have an allocation to gold bullion but are concerned about further price falls.

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