Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
Gold trumps prime real estate but not modern art over the past decade so which hard asset wins next?


 -- Published: Thursday, 23 April 2015 | Print  | Disqus 

By Peter Cooper

Gold is up in price by 179 per cent over the past 10 years. London prime real estate is up 138 per cent over the same period, and New York prime property by 67 per cent. But modern art beat the lot, up 252 per cent in the Knight Frank Luxury Index.

Call it the battle of the hard assets if you like. Then again price rises are one thing. Being able to cash out quickly – liquidity – is quite another. Estate agents and art dealers seem to have been very successful in persuading the rich to invest in property and art.

Liquid assets?

But only gold can be sold instantly and with minimal commission. Estate agents and art dealers know that only too well of course but they don’t have any problem being paid high commissions.

Still gold has held up well as a hard asset over the past decade despite its correction of the past three, almost four years. Real estate and art bubbles tend to fall like oil prices when they really tank. And higher interest rates only have one impact on property prices and art. The correlation with gold prices is not nearly so clear and in the late 1970s gold prices soared as interest rates hit the roof.

That said gold prices fell on Wednesday and Thursday this week because the US housing market showed signs of life and this revived fears of higher interest rates that might make gold a less attractive asset to hold.

However, it is true that gold prices have been very boring and range bound over the past few months. In order for gold to begin to show its metal there has to be a catalyst to cause a market breakout. Where’s that going to come from?

Black swans

ArabianMoney can still see three black swans on the horizon that could well do the trick: Greece’s bankruptcy, perhaps on July 20th according to the latest calculations; a sudden crash in Chinese stocks and rush back into gold by its biggest consumers; or a correction in US equities.

That could all take some time to pan-out though if we are really talking about unpredictable black swans that might turn out to be wrong too. Financial markets do look in a dangerously volatile condition. The high US dollar and crippled yields on German bonds are not a healthy sign. Asian equities in particular look in a bubble phase that could end at any moment.

True those who hold gold and silver may see its value dip a bit further. But the upside potential for gains when an accident happens will be far greater and might be missed entirely by selling gold now.

http://www.arabianmoney.net/


| Digg This Article
 -- Published: Thursday, 23 April 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.