The Gold Standard: Is it Time to Invest in Gold?

Wednesday, March 19, 2014, PM | Leave Comment

Before investing in gold, investors need to look at not just the gold numbers, but look also at factors across the world that might affect the price of gold.

The Gold Standard Is it Time to Invest in Gold

  • Watch for the Gold Price to Inch Up

    For example, Kitco News is reporting that the spot price for gold might inch up if the U.S. jobs report indicates that the economy is stalling again. Should the numbers from Federal Reserve show that the Fed isn’t aggressively reeling in its easy money policy, that would be another signal that’s bullish for buying gold. Recent U.S. economic data has been missing its forecasts with troubling frequency in the past month. These are all signs to watch when selling or buying gold.

    Gold got a bit of love from the European Central Bank this week after president Mario Draghi made upbeat remarks about the European economy that strengthened the Euro currency. That statement supported a rise in the gold price, while exerting downward pressure on the U.S. Dollar.

    The situation in Ukraine, of course, had the gold price jumping all over the gold charts for a time. Though the situation appears to be cooling somewhat, meaning that world stock markets will likely go up while safe-haven gold will probably lose some value.

  • Making a Run at Technical Resistance

    Gold analysts are expecting a price breakout and an effort to climb above $1,355. If the price holds at $1,345, more buying of the precious metal should take gold past $1,360. The daily bar chart is showing a two month uptrend for the gold price.

    The case for dumping stocks and buying gold is supported by a report that appeared on CNBC and seen everywhere by buyers and sellers who sell gold in Sacramento. It’s a fact that gold took a beating in 2013 with its price sliding down about 30 percent. That was gold’s worst performance since 1981, breaking more than a decade of rising prices that made gold investors happy. With gold prices up for 12 straight years since 2000, analysts expected that gold was due for a tumble.

  • Will the Helicopters Be Launched Again

    Gold analysts are telling investors to watch the Fed and its monetary policy. If the Fed continues to print money, that’s a bullish signal that gold will increase in value. Peter Boockvar believes that it’s impossible to unwind the easy money policy without stoking massive inflation which is bullish for gold. Keep a look out for these signs when looking at investing.

Gold investors need to pay attention to the various monetary signals around the world rather than simply looking at price charts. These signs and signals should help investors experienced and amateur alike when looking at gold.

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