Gold Evolution In The Current Financial Context
Stock markets and currencies are under the rule of uncertainty these years, and they prove weak in fighting the effects of the financial crisis. By consequence, investors are prudent and instead of being put to work, capital is conserved in wait for better times to invest. There is however, one window of opportunity for investment amongst all mostly-unreliable industries - the gold market. It not only promises return of investment and safety, but also delivers on these promises.
Figures and many analysts agree on this. Analyzed over a period of 39 years, the evolution of gold price reveals several interesting facts. First of all, figures show that the average price of gold for this period has been constantly on the rise, with very few lows and spikes.
But same figures show that lows on the gold market are not there to stay - and the price of gold goes up with every opportunity provided by a market ruled by fiat currencies and trust-based financial instruments. Besides the two lows mentioned earlier, gold price in the last 39 years also spiked on several occasions - once in the 80's when it reached USD 800 per troy ounce in a very brief period, other in 2008 when it breached the USD 1,000 per troy ounce under the pressure of the blooming financial crisis and currently, when it exceeds USD 1,200 per troy ounce.
Price figures normalized for the last ten years also reveal the existence of a seasonal pattern which may provide investors with the window of opportunity they need to put their money into gold. Thus, mid-year months of June and July constitute a time of calm for the price of gold, invariably followed in the second part of the year by a constant rise of the price. This pattern has been evident for every one of the last ten years, with one exception - 2008 when gold price took a brief dive of 5.4 percent. This exception included, price of gold increased with percentages ranging from 2.8 in 2001 to 20% in 2005 and 17.5% in 2009. This puts June and July in calendar as perfect window opportunities for investing in gold, just before its price goes up.
Furthermore, consolidated over a 39 years period, figures show that the increase of gold price in the second part of the year is at 7.5 percent - or an annualized 18 percent. What investors need to keep in mind, below facts and figures, is that in spite of current economic downturn, gold is currently going through what is usually known as a "bull market period", meaning that its price goes up against its own max and registers excellent scores compared to all fiat currencies.
Article Source: FxTradingStock.com
About the Author
Gold Made Simple offers bars of Baird gold with weights ranging from 2.5 grams to 12.5 kg, of the highest purity and suitable for private investors, trade buyers and retailers.
by: Jack Wogan
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Word Count: 443
Date: Thu, 15 Jul 2010
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