Making predictions of future prices of anything is risky, but here goes- Treasuries yields to rise further 1. To combat falling domestic currencies a number of emerging market countries have begun selling the U.S. Treasuries they hold. 2. China, the largest single holder of U.S. Treasuries, also has reduced its holdings of U.S. Treasuries, this year, which means more selling than buying by that country. Ditto, Japan, the second largest holder. Both factors put more U.S. Treasuries on the market, partially explaining the rising yields, which indicate a diminishing investor interest, and the price they are willing to pay when buying this debt. (Investors' willingness to buy U.S. debt is critical to financing the operations of the Government, financing the deficit, and re-financing the existing U.S. debt.) With the U.S. Treasury already buying 70% of the new issues of U.S. debt, this could effectively prevent them doing any tapering, and could even force them to increase their purchases as demand dries up. Gold prices to rise further Should these factors continue to work in the markets, I expect gold to continue to go up in price. Holders of gold have enjoyed a run up, over a very short period of time, of more than 20%. Expect more. My two cents, for those who care. Russia to Brazil Intervention Adds to U.S. Debt Woes Amid Losses - Bloomberg _____________________
I have been mining gold for over 25 years. If you can predict future gold prices you can be very rich very quickly. Gold is very volatile and unpredictable. The safe haven investment you hear on t.v. is nothing short of comical. The economy is only a part of the driving forces of gold price. I have watched gold markets most of my adult life and I don't even pretend to know what the price of gold is going to be at any point in the future. While gold has gone up as of late it is still down more than 20% from a year ago. If you look at the major gold producers in the world, Barrick, Newmont, Ango Gold, You will see their stock prices are way down over the last few years.
Gold is for preppers, coin collectors or those who have so much money they dont know what else to do with it imho Far better imho to take a steady and cautious approach. I invest in stocks of UK Blue chips that yield high dividends. Many of my investments are paying 5% or so when the savings rate in the UK is less than 1% and inflation at 2.8%. You've also got growth with the market seeing a slow but sure upswing that hopefully will continue. An example is Vodafone which is the single company I have the most invested in. They pay an annual dividend of just under 5% and recently sold off their Verizon holding for $120 billion which caused a 10% rise in share price, and much of that $120 billion returning to share holders as a windfall.
As an investment I agree with Steve. The biggest buyers of gold today is the Asian jewelry market. Has been for a while. Who knows how long gold jewelry will be in favor in Asia. Your guess is as good as mine.
How much gold or other precious metals you own probably just reflect how big a pessimist a person may be, with profound optimists seeing little reason to hold any. Financial advisers will sometimes suggest 5-15% of a portfolio should be made up of precious metals, but since it's really only serious financial collapse insurance, at best, it will probably never be needed, and it is inert in every way- yet, Indians and Chinese swear by it, buying as much as they can afford, and every Government is a holder of gold. 2012 and 2013 so far have been years in which governments have been major purchasers of gold. Why do they do it? Don't they have better things to do with their money? Apparently, they think not. Cookies must be enabled. | The Australian This article was written in early 2013, about what happened in 2012. Since these record purchases occurred in 2012, before the price of gold plunged, we could just chalk it up to another instance of bad money management by governments, but it's also not unreasonable to assume these purchases by governments have continued, or accelerated, with the price of gold now much lower that it was at this time last year. What are they worried about? What do they think gold can possibly do for them? ______________________
Have you read about the Swiss lately. Looks like gold may be on the rise. If legislation is passed they will be backing percentages of their monetary value with gold. That will cause demand and prices upward. Just have to wait and see.
Gold bugs have been taking it on the chin for quite a while, now. Throughout this time governments have continued to buy gold, the Chinese and Russians being among the bigger customers. The US Government remains one of the world's biggest owners of gold, and recently, Allen Greenspan wrote an article explaining why governments are keen to own at least some gold: as he explained it, it gives credibility to the currency, even in situations in which the currency is not redeemable for gold under ordinary circumstances. The idea was that, if there was a run on the currency, a government could stabilize confidence by offering to redeem for gold. This would help restore confidence in the currency and little gold would actually end up being redeemed. Interestingly, gold spiked today when the Swiss voted down the proposal to require the government to hold more gold. Speaking of currencies, is anyone shedding any tears over the Russian Ruble falling from about 32 to the USD to the now 50+ rubles to the dollar, since they invaded the Ukraine? Or, that the value of their oil sales has plunged? It looks like we have shale oil, produced in the US and Canada, to thank for this. It has come at a convenient time to put additional economic pressure on Russia.
