Gold Price Today
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The chart shows how the Hryvnia has been devalued significantly against the USD in 2008, from 0.22 to 0.12. It remained rather stable until this year, when the currency collapsed from 0.12 to 0.08. At the same time, the price of gold in Hryvnia went from 4,000 to 8,000 in 2008. Since the beginning of this year, Hryvnian gold exploded from 10,000 to 17,444 last week.
We see charts as the “improved mousetrap,” as it were, and superior as a tool for market timing over fundamentals, or any other similar undertaking, for relating to what and when to buy in the markets. Still, there are not that many converts who pay more attention to what the market is saying. The one thing we know for sure is, regardless of whatever one has in the form of expectations, they are always subordinate to the final arbiter over price, and that is the market itself. The best we can say about gold is that it may be transitioning from its protracted down trend. The signs that gold remains under pressure are still there, bearish spacing, lower swing highs, etc, and that means any buying has to be very select, or not at all, again, profit being the only objective.
Gold’s progress was characterized by a sudden steepening of the curve leading to a final blow off when the price had gotten ahead of itself. We now need to see a similar occurrence take place during a sell off. However, this sell off, as torrid as it has been lacks that final spike down which occurs when even the most ardent bulls have had a guts full and finally throw the towel in. Gold and silver’s inability to sustain a decent rally suggests that it could re-visit and test its old June lows. Should this support fail to hold we could then experience a rather disorderly sell off taking gold back to the $1000/oz level.
In his latest Gold Investment Letter, John Hathaway writes that chances are high that the bottom is in for precious metals and miners. The most interesting statement in the investor letter is the observation that tontrarian value investors are entering the precious metals market, both the metals and miners. That is a signficant evolution, and the most important sign of strength.
We could see a marking of time during which all of this continues to unfold. No one has a clue as to the how or to the when, which is why 2014 could be an extension of 2013. The way in which Obama keeps prodding Russia could precipitate an event that escalates out of control, just possibly, as an example. This is why we say to watch out for weekend surprises. When people least expect, and/or are in a position to least react, some kind of announcement could be made that devalues the fiat Federal Reserve Note, still wrongly called the “dollar.”
What to make of the current trend in the price of Gold?
In today’s shaky economic climate, investing in gold is one of the few reliable things you can do. However, it is vital to your wealth and profits that you monitor the price of gold carefully, to stay on top of new trends. By doing so, you will discover that, lately, the price of gold and silver have been going down while the value is going up. A strange phenomenon, but important to imporant the underlying drivers.
Why is the gold price going down while commentators and analysts say that the value of gold is rising? How can that be?
That is a great question, and a critical one to reply in an accurate way. The answer to that question is based on the monetary aspect of gold. The fundamental value of gold as a hedge against the destructive monetary policies of the central banks in the west. Meantime, traders and investors have decided to search for profits in the equity markets; they have been selling the metals lately. That explains the disconnect between gold as an investable commodity versus gold as a hedge against monetary destruction.
By following the articles we publish at GoldSilverWorlds.com you can follow this trend and stay up to date on the latest market developments. Through our many years of experience and research, but also our extended network of experts that are behind GoldSilverWorlds.com, we are able to provide a wealth of valuable information, Be sure to check out the current gold price and read our latest articles analyzing the gold price. They provide accurate and well researched insights.
Last update: May 2013
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