Gold owners will be happy with the progress of prices so far this year. Things couldn’t have looked any better as fundamentals remain strong and the course of the price chart is technically in great shape. 2014 promises to be a great year for gold investors.
The price of gold has made a quite remarkable leap that for most market speculators was unexpected. Since the turn of the year prices have gone from $1,191.45 per troy ounce in early January to a $1,351.42 an ounce high last week. This is an amazing 14% rise just two months – not bad for commodity that was supposed to fall to below $1100.
In reality, there was hardly any risk with gold at $1,200 per ounce, but distressed and aggravated investors were showered with predictions that gold prices would sink even lower. Some experts quoted gold would hit rock bottom at below $1000. At the same time speculators were betting on negative psychology and attempted to form the conditions for a self-fulfilled prophesy of a market collapse. The trick had worked twice in 2013 despite increasing demand, bringing the price of gold to such levels that for most companies the metal wasn’t worth mining.
This year’s outburst is really excellent news, but what the market needs at this time more than ever is to keep in balance, and this now appears to be the case: prices have been advancing upwards in moderation for the past three weeks and a subtle but clear “double peak” formed last week, most probably indicating that the market is making a pit stop from the mini rally for recollection and “fuel”.
Gold prices working to everyone’s advantage
So far this year, we are seeing the real picture of a healthy gold market, a market we can trust and rely on, a market with no extreme volatility or movement without direction, a market based on fundamentals and economic logic. Although 2013 is not so far in the past for one to say that the scars are healed or that fear is gone, gold is certainly reclaiming its throne as the “king of precious metals” at a time when it is most urgently needed.
Financial instability east and west of the Atlantic is threatening the world’s economy, and a hedge against inflation and currency devaluation is desperately sought after by people worried for the future of their savings and their financial well being. In the meantime, Armageddon scenarios seem more credible considering the awkward way the US government and the FED dealt with the country’s debt crisis.
The whole atmosphere encourages all those who wish to invest in gold, and now that the market’s credibility seems to be restored, all you have to do is wait for the right moment to get on board as the market will certainly give you the chance.
Do not forget however that a sensible investor should seek some assistance navigating through the sea of gold, and that is what gold investment companies like coininvestdirect.com are here for!