Gold’s Rise and Fall

Gold’s Rise and Fall

Why experts say the metal is still a good investment

Gold’s glimmer is gone, said the Wall Street Journal—this is currently reflected in the state of mutual funds that invest in gold miners. Gold has suffered a plunge this year, and investors are on tenterhooks on whether to dispose or retain investments backed by the precious metal. First Eagle Gold Fund’s Matthew McLennan stated that a “potential hedge has derated”, but continues to argue that investing in the commodity is still important. An eventual Federal Reserve tapering will have an impact on gold prices, and gold’s volatility may continue in the meantime.
Despite the downtrend that the metal is experiencing at this time, why do experts have the opinion that it’s still a wise investment? An article in Money Morning is of the view that gold investments will again shine. As of the moment, the commodity is “going through a correction”, like what happens at the end of a price bubble. Eventually, gold will make a comeback, and will yield great returns if bought for the long term. Contrarian investing will prove that patient investors who remain faithful to the metal will be rewarded, and its true value lies in investment portfolio protection.

Where does gold stand now? Recent reports in Market Watch revealed that gold scored a gain for the second time in a row. This rise, according to chief market analyst Chintan Karnani, came from “short covering before the Fed meeting” as well as the easy-money policies of the European Central Bank. The same article quoted Bullion Vault’s head researcher Adrian Ash who said that these levels could encourage “more bullish trading as the New Year begins”. The two risks to gold’s stability, he continued, are Fed Reserve’s bond-buying program and the low trading values of all markets during the Christmas season. Still, with market prices moving rapidly, investors are advised to be cautious about making the next move where gold investments are at stake.

Fear among investors on Wall Street: The Dow Jones fell 0.81% and the Nasdaq 1.40%

Fear among investors on Wall Street: The Dow Jones fell 0.81% and the Nasdaq 1.40%

At the end of the session, the index lost 129.60 points to the 15,843.53 points, while the S & P 500 index fell 1.13% ( -20.40 points) to settle at 1782.22 integers.
The greatest losses were for the Nasdaq composite index , which fell 1.40% ( -56.68 points) and finished in 4003.81 units.
This day saw the biggest losses in almost five weeks, after the markets interpreted the budget agreement announced late on Tuesday in Washington (which still must be approved by both houses of Congress) could advance the reduction of Fed stimulus to the U.S. economy.
Although the agreement will offer two years of stability, is more general and less specific than expected by Wall Street and, above all , to remove the element of uncertainty , you can open the door to the Fed starts to cut 85,000 million injecting monthly in the economy.
Therefore, all the eyes of Wall Street will be aware of the meeting of the Open Market Committee of the Fed ‘s next Tuesday and Wednesday and any further developments until then that might influence the decision in any sense of that institution.
The red of the losses covered the majority of the board of the Dow Jones Industrial Average, with 25 of its 30 stocks lower.
The largest decreases were for Nike ( -3.00% ) , United Health ( -2.58 % ) and United Technologies ( -2.09 %).
Among the few increases highlighted Visa ( 3.12%) , which rose in the wake of rival Mastercard .
The latter, which is not part of the Dow Jones Industrial Average, gained 3.53 % after the measures announced after the markets closed yesterday (a ” split” of their shares, a 83% increase in its dividend quarterly and a new repurchase program ) .
In other markets, the Texas oil fell 1.11% and closed at $ 97.44 a barrel, while gold fell to $ 1,257.9 an ounce.
The profitability of U.S. 10-year bond rose to 2.848% and reduced euro gains against the dollar , so that was trading at 1.3787

Wrong end of the semester for investors: Dow collapse or loss of gold and silver

Wrong end of the semester for investors: Dow collapse or loss of gold and silver

At the gates to complete the first six months of exercise, the words of last week the president of the Federal Reserve, Ben Bernanke, have cooled black numbers that accumulated most international stock exchanges. The Dow has been the hardest hit.

The largest losses are for Sabadell (-33.27%), Abengoa (-32.01%) and Arcelor (-31.63%). In the upper part, however, emphasize Sacyr (39.16%), IAG (36.77%) and Bankinter (35.24%). Among the majors, only prevents Repsol Red (+5.25%) . Santander falls 18.72%, 12.11% Inditex, 8.86% BBVA, Iberdrola and Telefonica 3.96% 3.83%.

In any case, stock investors are not hit the hardest. In fact, only a handful of investment products that are saved from burning in the first half. ‘s leading natural gas yields, an increase of 12.29%. Le is Wall Street, which despite recent declines days, range over 11% in the year. Fill out the podium cotton (10.93%). While, beans (+5.55%), petroleum Texas (+2.35%), and 10-year bonds in the UK (+0.81%) and Germany (+0.23%), also provide gains so far this year. The rest are pointing to losses.

Although bonds UK and Germany enduring positive, do it with a performance far removed from those offered in early May. European debt markets have weakened sharply in recent weeks, so that emissions of Spain, Italy and especially Greece, have lower yields than in late 2012.

Greek 10-year bonds, in fact, are placed among the worst investments. Le exceed silver (-35.57%) and gold (-23.63%), which have exacerbated the fall in recent weeks, and coffee (-16.55%). In general, the price of metals lose more bellows commodities. The low 14.03% copper, platinum 13.74% and 13.51% aluminum.Meanwhile, outside the coffee, wheat leaves 12.92%, sugar 12.87%, and 6.30% corn.

BEST AND WORST YEAR INVESTMENT

Percentage (%)

Source: Bloomberg and INE

THE BEST AND THE WORST IN THE IBEX 2013