The Gold Economy

Presently, gold stocks are striving to outperform gold bullion. We all know the abundance of money one can make if one invests in gold at the right time.

If we look at the historical background, gold stocks have always outperformed gold bullion as mining companies always benefit whenever gold prices go the upward swing while the cost of production remains unchanged so that the excess revenue leads to increase in gross profits.

When there is increase in gross profit without a corresponding increase in the cost of production, the positive side we should expect is… Continue reading

A survey conducted by Bloomberg reveals the possibility of gold extending gains from a record as debt crisis truncate economic growth. Bloomberg surveyed 30 people who are well informed about the basis of investments and made up of traders, investors and analysts.

While nine of the people surveyed were neutral to the outcome of the survey, five predicted that the price of gold will drop while sixteen out of the thirty people who took part in the survey believed strongly that gold will be rise in price next week. These sixteen people formed the majority of the surveyed people… Continue reading

Some financial analysts have suggested that it is about time to get back to gold standard that was severed 40 years ago in mid-August 1971. John Tamny of Real Clear Markets while discussing with Jared Bernstein, the CNBC contributor on whether the United States should return back to gold standard observed that severing dollar links with gold was a monumental blunder and the biggest mistake of modern times. John further said that the decision of President Richard Nixon to sever the final link of the US dollar to gold was a devaluation of the dollar and history… Continue reading

The price of gold ascends after the declines it went through in the last couple of business days last week. However, the price of gold is still ahead by about 7.8 per cent when compared to its price at the end of July.

Meanwhile, TD Securities has raised the average price forecast for gold to $1,850 by 2012, $1,680 and $1,750 by the third and fourth quarters of this year respectively claiming that a weak economic outlook and the fact that the US Federal Reserve has got no room to control monetary policies as at now… Continue reading