Factors that drive gold's price...

[Potemkin]

The average non-stacker person will think gold's price is moved by supply-demand and influenced also by the rarity... which ain't that much of an exaggeration.

TRUE.

But there's a lot more and sadly, the ETF's, the financial markets and the geopolitical facts also influence gold's price...

Telegraph article mentions 7 drivers, gives some details...
http://www.telegraph.co.uk/finance/...4933/The-seven-drivers-of-the-gold-price.html

Several key factors that determine gold's price:
http://www.primevalues.org/investors-guide/what-drives-golds-price.htm

I'm sure the 'experts' know very well what moves gold, but I'm still investigating the factors that move it.

I think if the Russia-West conflict escalates, potentially extends into other BRIC regions, it will certainly give us more expensive gold.

I see this crash as a wonderful opportunity to buy more :clap:

If 2014 will bring more tapering and if they keep manipulating the US economy's performance results, then this might be a rare occasion to buy "cheap gold", before the great spike happens.

 

[pmbug]

Gold is the ultimate insurance (hedge) against a currency crisis. It's strongest moves come when there is systemic financial distress. I don't believe that central bank actions since Lehman have solved anything. The piper will be paid eventually.

Edit: See India for a current example. Folks are paying high premiums for gold right now (ultimately) because of issues with the Rupee.

 

[Potemkin]

Nothing has been solved. We're buying time.

But at least they're not easing as much now.

 

[rblong2us]

time to buy ?

from Bill Bonners daily email ....

So what kind of investments are gold mining stocks?

That is a good question too.

On the surface, they look like value. Compared to other stocks, they’re cheap. The US stock market has more than doubled since ’09, the gold miners have stoutly held its ground.

They are still as smashed and dented up as they were when the crisis began. That is not to say that they won’t be even more wrecked next year. But right now there are probably a few cans of beer intact, lying among the wreckage, ready to be picked up.

What caught our interest was a couple of articles written by colleagues Steve Sjuggerud and Chris Mayer. Simultaneously and independently both have concluded that the time to get back into gold miners is now.

That is especially significant because Steve and Chris are among the best stock pickers in the business. They have each approximately doubled the performance of the S&P over the last 10 years, a feat that the Efficient Market Hypothesis tells us is practically impossible.

It would take a brave stockbroker to recommend mining companies now. Not only are prices low, there is no reason to think they might rise. The world economy is slowing down, not speeding up. Commodity prices are falling, not rising. Inflation is ebbing, not flowing. And the dollar, against which gold and other commodities is measured, is going up.

Knowing these things, stockbrokers do not want to mention mining shares. And investors do not want to hear about them.

Which makes us wonder if the time has come to buy.

Says Steve Sjuggerud:

“After a horrendous couple of months, gold stocks appear to be trying to bottom out. We have a glimmer of an uptrend setting up. The sun might be starting to rise.”


Is the sun already peeping over the horizon? We don’t get up early enough to know. But as long as the earth still turns, the sun must rise sooner or later. And we are tempted to take a position in these deep discount gold mining stocks and wait – just as though they were value plays.

Steve prefers to put in a stop-loss. He figures the most he can lose is 7%, while the upside is huge:

“The last time gold-mining stocks were this hated was in late 2008. The Sprott Zacks Gold Miners Index soared 242% from its bottom in late 2008 until the end of 2010 – just a little more than two years.”


Steve is hoping for a re-run.

Buy now? Use a stop loss? Wait for a clear up-trend? We don’t know which approach is best… but we’re planning to study the issue and report back.

Bill Bonner
The Daily Reckoning

 

[mmerlinn]

The time to buy ANYTHING is when NO ONE else wants it. Likewise, the time to sell is when EVERYONE wants it.

 

[Potemkin]

Right.

I think oil will be a good investment, right now it's falling like nuts.

Whatever you want to buy: have something to buy it with!!!

Then you can buy anything!