
.999 Fin Gold Bullion Bars
Gold builT on its recent rally and is expected to continue into next week. The precious metal closed January on the positive side with a upward gain. Gold’s 8-week upward swing is a positive sign for 2012. This is great news for the precious metal, as investors look forward to gold’s continued rise in 2012. With gold’s recent price retreat, speculators were awash with data claiming the yellow metal’s rise was “finished” and that we’re heading into a permanent “Bear Market.” It was clearly pointed out that during the 2011 holidays, the metal would hover steady around $1,600 an ounce. Once traders headed back to work in early 2012, gold would take either a sudden drop, supporting the “bear market” believers, or it would turn right and steadily increase as projected. For a while many held their breath, not knowing where it was going. But, as I’ve always said in ALL of my blogs, all the perilous events that has contributed to gold and silver’s steady rise are still in place; The U.S. economy, The U.S.’s multi-trillion dollar debt, European’s insolvency, Middle East tension, high world-wide unemployment and a few more.
Gold’s upward momentum this week started following the dovish statement by the Federal Open Market Committee on its long-term interest rate outlook will likely continue.
Still, some market watchers said given the nearly one-way move in commodity prices in general, gold and other markets could be due for a corrective pullback, which would mean lower values. But, this is normal. There will always be “profit-takers” as both gold and silver increase in value. There are huge institutional investors that bank on small, steady increases in the metal’s value then they pull the plug and reap profits. Of course, this temporarily lowers gold’s value. Then, “bargain hunters” jump in and the cycle starts all over again. Remember, until the many calamities mentioned above begin to ebb, gold and silver will always maintain its intrinsic value.
Prices rose on Friday and on the week. Comex April gold contract settled at $1,735.40 an ounce, up 4.12% on the week. March silver settled at $33.790 an ounce, up 6.68% on the week.
My only dismay about the recent gold and silver prices is that I didn’t buy more than I did when gold was hovinging around $1,550 an ounce and silver bottomed at $26,00. Darn. I have to listen to my advise more.
For more information on this article or any other on my blog, please email me at plewin@decaturjewelry.com or call toll free 1-888-877-GEMS (4367).