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 With Stocks
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 21 2017
By: Ira Epstein

Bitcoin, Bail Ins And Bullion
By: Mike Maloney

Tactics For The Gold Bull Era
By: Stewart Thomson

Dow Peaking? The Quick Guide to Diversifying Your Stock Profits
By: Jeff Clark

What History Says for Gold Stocks in 2018-2019
By: Jordan Roy-Byrne CMT, MFTA

Jack Chan's Weekly Precious Metals Market Update
By: Jack Chan

Synchronized Global Growth May Have Arrived
By: Frank Holmes

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: GoldCore

Asian Metals Market Update: November-21-2017
By: Chintan Karnani, Insignia Consultants

 
Search

GoldSeek Web

 
Gold – Wall Street Versus Main Street


 -- Published: Wednesday, 5 August 2015 | Print  | Disqus 

By Jeffrey Nichols

At recent lows around $1075 an ounce, gold has been trading at the lowest price level since February 2010.  And, in recent days, the metal has been consolidating in a narrow range just under $1100. 

Now, it looks to me like gold is poised to break out one way or the other – but the question remains, “Which way?”

The answer may depend on some exogenous “outside the market” development, possibly a sharp sell-off in world equity markets or a spate of negative economic indicators making it less likely that the Fed will raise interest rates this autumn as most pundits expect.  

Gold may be out of favor on Wall Street . . . but not on Main Street. 

While many hedge-fund managers, institutional speculators and the financial press have railed against the yellow metal, retail investors around the world have seen a bargain at recent lows and have stepped up their purchases of physical gold. 

More than anything else, it has been the U.S. Federal Reserve’s ambiguous interest-rate policies that have weighed heavily on the metal.  Financial-market expectations of an imminent increase in interest rates have driven the U.S. dollar’s exchange rate higher against key foreign currencies. 

Today, the dollar index stands at a 12-year high.  As the greenback has appreciated, gold priced in dollars, has fallen along with oil and many other commodities priced in U.S. dollars. 

Simply put, institutional speculators – including the big bullion banks – have shorted gold on futures and other derivative markets while ETF-investors have dumped bullion, driving its price lower, and, at the same time, supplying Shanghai and other Eastern markets with the physical metal.  

Indeed, it has been the continuing flow of gold from Western to Eastern markets that explains why gold has performed so poorly in the face of continuing strong demand from the large Asian markets. 

Despite gold’s disappointing performance in the past three years – and the real possibility we could see further weakness in the days ahead – I believe gold will perform exceedingly well versus most other investment assets over the next five-to-seven years. 

When institutional-investor attitudes toward gold improve – and the flow of gold from Western to Eastern markets diminishes – the shortage of available metal will be reflected in sharply higher prices for the yellow metal. 

 

About Rosland Capital

Rosland Capital LLC is a leading precious metal asset firm based in Los Angeles, California that buys, sells, and trades all the popular forms of gold, silver, platinum, palladium and other precious metals. Founded in 2008, Rosland Capital strives to educate the public on the benefits of buying gold, numismatic gold coins, silver, platinum, palladium, and other precious metals. Like Rosland Capital on Facebook for company updates and industry news or order The Rosland Capital Guide to Gold in support of the Red Cross.

 

About Jeffrey Nichols

Jeffrey Nichols, Managing Director of American Precious Metals Advisors and Senior Economic Advisor to Rosland Capital, has been a leading precious metals economist for over 25 years. His clients have included central banks, mining companies, national mints, investment funds, trading firms, jewelry manufacturers and others with an interest in precious metals markets. 

 


| Digg This Article
 -- Published: Wednesday, 5 August 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.