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EXCLUSIVE<br />Volatility <br />of Gold<br />www.goldratefortoday.org<br />
The price of gold, as of every traded asset, is subject to the ups and downs of the market <br />The rate of this precious...
Gold’s value is shaped by demand and supply<br />The factors are gold production by gold mines, central banks, investors a...
Thinking that it is possible to exactly calculate and predict the gold price is plainly wrong<br />There are many factors ...
Other factors that make the gold price unpredictable and volatile:<br />The interplay of the international financial syste...
In average (especially since the beginning of 2000) the gold price has been risen<br />This is because of the increased de...
The 10-year upward trend of the gold price asks for caution <br />First, gold is now at an all-time high <br />Thus, inves...
Second, history tells us that the gold price can fall, and stay down for extended periods <br />If someone had bought gold...
Third, oil is in many respects similar to gold: <br />both are popular commodities among traders, both are finite resource...
Oil stood in the beginning of 1999 at a low of US$ 19 per barrel <br />In July 2008 oil was at US$ 147. Within one year th...
Could this also happen to gold? <br />How to know when the gold price has reached its peak?<br />VOLATILITY OF GOLD<br />w...
The volatility of gold is a market risk <br />Another market risk is the liquidity risk <br />This occurs in thinly traded...
Visit my blog:<br />www.goldratefortoday.org<br />Live Gold Rates, <br />Independent Trading Advise and <br />many Resourc...
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Volatility of Gold

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The price of gold, as of every traded asset, is subject to the ups and downs of the market. The rate of this precious metal can fluctuate fundamentally. The volatility of gold must be a concern to all short- and long-term investors ...

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Transcript of "Volatility of Gold"

  1. 1. EXCLUSIVE<br />Volatility <br />of Gold<br />www.goldratefortoday.org<br />
  2. 2. The price of gold, as of every traded asset, is subject to the ups and downs of the market <br />The rate of this precious metal can fluctuate fundamentally <br />The volatility of gold must be a concern to all short- and long-term investors <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  3. 3. Gold’s value is shaped by demand and supply<br />The factors are gold production by gold mines, central banks, investors and the industry (jewelry, electronic etc.) <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  4. 4. Thinking that it is possible to exactly calculate and predict the gold price is plainly wrong<br />There are many factors that influence the price, but cannot be predicted<br />Such as the discovery of new gold deposits, and natural disasters that destroy gold mines<br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  5. 5. Other factors that make the gold price unpredictable and volatile:<br />The interplay of the international financial system<br />Inflation and interest rates <br />Alternative investments<br />The irrationality of investors <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  6. 6. In average (especially since the beginning of 2000) the gold price has been risen<br />This is because of the increased demand in emerging market (predictable), <br />Central banks that stepped up their reserves gold reserves (partly predictably) and the financial crisis which made gold a more attractive investment (unpredicted by most) <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  7. 7. The 10-year upward trend of the gold price asks for caution <br />First, gold is now at an all-time high <br />Thus, investors who buy gold now do it when the price is as high as never before. Is this a wise move? <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  8. 8. Second, history tells us that the gold price can fall, and stay down for extended periods <br />If someone had bought gold in 1979, <br />that investor would have to wait for thirty years until the gold price had reached the same level, so that a sell would not result in a loss (not considering inflation and opportunity costs) <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  9. 9. Third, oil is in many respects similar to gold: <br />both are popular commodities among traders, both are finite resources, extraction is costly and difficult to replace <br />The recent history of the oil price should be a warning of the volatility risk of this commodity, and of all assets <br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  10. 10. Oil stood in the beginning of 1999 at a low of US$ 19 per barrel <br />In July 2008 oil was at US$ 147. Within one year the price fell to US$ 34 <br />This is an unprecedented drop of 77 per cent within just twelve month<br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  11. 11. Could this also happen to gold? <br />How to know when the gold price has reached its peak?<br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  12. 12. The volatility of gold is a market risk <br />Another market risk is the liquidity risk <br />This occurs in thinly traded markets, where sellers have difficulties in finding buyers <br />Futures of not actively traded contracts might run into this risk <br />Shares of small stock mines might also face liquidity problems<br />VOLATILITY OF GOLD<br />www.goldratefortoday.org<br />
  13. 13. Visit my blog:<br />www.goldratefortoday.org<br />Live Gold Rates, <br />Independent Trading Advise and <br />many Resources about Gold Investing<br />Interested in More?<br />www.goldratefortoday.org<br />
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