According to the calendar, it is still winter and gold markets still face some tough sledding, says Jay Taylor, host of the radio show "Turning Hard Times into Good Times." Big investors are leaving the market and small investors hesitate to reenter.
You need to find the quality management teams with money in the treasury, the ability to raise more and having the advanced projects that are well along the development path towards a mine that is going to be a long life, lowest quartile all-in cost producer.
The dollar only has value because the foreign exchange markets and the people that use it assume it has value, vaguely based on the standing of the issuer. This can change suddenly and substantially, irrespective of changes of the quantity in circulation.
The big surprise this morning was that the US jobs figures…surprised to the upside, and then some. Gold prices promptly fell by as much as $18 (all the way back down to $1,682) in the wake of the report that showed US unemployment falling to 7.7%.
Many goldbugs like gold as a hedge against Federal Reserve policies and high inflation. The president of Cranberry Capital is a different kind of goldbug and explains how his proprietary monetary measure, "The Actual Money Supply," is the reason why.
Spot gold dealings started the final session of this turbulent week with a loss of about $6 in the price of the yellow metal, at $1,720 per ounce. Gold had recovered by about half a percent on Thursday but are now poised to record their largest weekly loss in four weeks.
While news that the euro zone had reached a deal on the next installment of aid for Greece initially pressured the US dollar and lifted gold and the euro a tad, its impact wore off relatively quickly and markets opened with a different tenor this morning.
The reality for gold bulls may fall short of their expectations of ever-increasing prices that run ahead of gold supplies, says a self-described gold bug who forecast the initial run-up of gold at the turn of the millennium but who now finds himself in the bear camp for bullion.
Spot gold lost $5 on the open to start the new week with a bid at $1,637 the ounce. Silver fell 20 cents to the $30.14 mark per ounce. Platinum climbed $5 to $1,528 while palladium rose $2 to $651 the ounce.