Gold edged down on Tuesday on low volumes when the euro dropped to a two-month low against the US dollar despite confusion about a deeper bailout package for Greece which has driven many investors to wait on the sidelines.
Although the euro zone crisis did not make it into the US presidential debate on foreign policy in October, Treasury Secretary Timothy Geithner did remark earlier in the month: "We are very worried about the risk of collapse in Europe."
As more and more of these currency units – call them dollars, call them yen, call them euros, call them renminbi – are issued, it would make sense that the nominal, non-inflation-adjusted price of resources over time should go up.
Despite its natural endowment of resources such as gold, platinum, palladium and many other precious, rare metals, the Southern African state of Zimbabwe has not been able to profit from the decade-long boom in the metals markets.
Any reasonable saver who has seen the virtue of accumulating gold should be asking himself the crucial and necessary question of when to part with their gold, or at least when to reduce his allocation to precious metals.
As the US presidential election draws closer, many continue to wonder how the outcome will affect financial markets. Among gold market observers, there has been speculation about how the metal might react if Mitt Romney wins.
Though most simply remember the 1987 Crash as one panicked selling day, Black Monday was just the largest drop in a string of bad days. On the Wednesday before, the Dow sold off 95 points (then a record) and dropped another 58 points on the Thursday. On Friday the selling got worse.
I despise the interventionist ways of the Federal Reserve. But as a gold investor, I appreciate the Federal Reserve’s “help” in boosting my portfolio. Fed policy right now can only lead the gold price in one direction: higher.