Wednesday, August 24, 2011

Gold Price Corrects

Just a word on the gold price today. It has corrected down a little ($60) to around $1830 per ounce. This is a good sign. All markets that go up quickly need to settle back to be healthy. Could it go lower? Maybe.

Remember, just six weeks ago, gold was around $1480 per ounce and commentators were saying the same things about corrections being healthy at that price.

Should people wait to buy? For large amounts; perhaps, but the dollar cost average approach is always the most prudent approach. That is, buy gold regularly (say monthly) and you will be able to smooth out the highs and lows and take advantage of the continuing secular (long-term) bull-run in gold and silver.

Fundamentals don't change. The system is straining. Too much sovereign debt, Central Banks buying gold (China, South Korea, India, Philippines, Sri Lanka etc), Eurozone banks in trouble. Gold is money.

Jim Rickards says on the video below, gold is money and if you want money you need gold. J.P. Morgan once said; “Gold and silver are money. Everything else is credit.”

Finally, James G. Rickards talks to James Turk. An excellent video.

Gold in New Zealand dollars: $2201.32 per oz
Previous all time high: $2319.47 per oz (23 Aug, 2011)

Silver in New Zealand dollars: $50.40 per oz
Previous all time high: $59.19
per oz (30 Apr, 2011)


The Anglo-Far East Company
The Original Private Gold and Silver Bullion Custodiann
Your reference: an-001

No comments:

Post a Comment