Has Gold's 'Bubble' Burst?

Has Gold's 'Bubble' Burst Or Is This A Golden Opportunity?

Today’s AM fix was USD 1,232.75, EUR 957.40 and GBP 822.55 per ounce.
Yesterday’s AM fix was USD 1,249.50, EUR 961.15 and GBP 819.67 per ounce.

Gold is lower today in all currencies. It is now flat on the week in dollar terms but has eked out gains in pound and euro terms after the BOE and ECB elected to keep interest rates at 0.5%. Unprecedentedly low interest rates continue in the western world which is gold supportive.

The U.S. nonfarm payrolls data will be published at 1230 GMT. A poor jobs number will likely see safe haven buying and a better than expected number should lead to weakness.

Prices had advanced this week after Middle East tension saw oil rise to over $103 a barrel and political turmoil in Portugal led to a surge in the nation’s borrowing costs.

Gold analysts are the most bullish in a month after the political instability in Portugal raised concern that Europe’s debt crisis will worsen and as a record quarterly drop in prices drove demand for jewelry and coins according to Bloomberg.

Has Gold's 'Bubble' Burst Or Is This A Golden Opportunity?
Our recent well attended webinar has been uploaded to YouTube.
UK Bank Rate (1694 – 2013)

Topics covered in the webinar included:

Outlook For Gold And Silver This Year and Coming Years

Learning From 1970s Bull Market & 1975/76 Price Collapse

Safest Way To Own Gold And Silver

Paper and Digital Gold

Knowing When To Reduce Allocations Or Sell

Safest Way To Own Gold And Silver

In the webinar we caution all to “ignore the considerable noise, alarmist articles and headlines and always focus on the fundamentals, on the importance of diversification and on the long term.”

Despite the favourable macroeconomic, monetary, systemic and geopolitical fundamentals - sentiment in the gold market remains lukewarm - especially among the retail public and media in western markets.

Cycle of Market Emotions

There remains scant media coverage of the gold market in the non specialist financial press and media and what coverage there is tends to be quite negative or very simplistic.

Gold’s long term diversification value and benefits continue to be almost completely ignored in favour of simplistic analysis and assertions from gurus or a superficial focus on gold’s recent nominal price action in dollar terms.

Short term speculators and weak hands have again been washed out of the paper market on the recent sell off and many speculators are short now due to the poor technicals.

Given the variety of macroeconomic, systemic, geopolitical and monetary risks in the world today, owning an internationally diversified portfolio with healthy allocations to gold and silver bullion has never been more prudent.

News From Around The World

GoldCore on Bloomberg: Gold Bulls Dominant as Portugal Stokes Debt Concern Bloomberg
Billionaire Sprott Warns - Derivatives Will Crash Financial System King World News
Bass Hunkers Down: "We Dramatically Reduce Portfolio Risk" Zero Hedge

Download Biannual Review & Outlook (2013)
With the end of the second quarter it is important to take stock and review how various assets have performed in the first half of 2013 and assess the outlook for the rest of 2013 and, more importantly, the coming years.
Headline topics covered in this report:3D_Book_Goldcore

Review of Asset Performance H1, 2013
Outlook For Gold And Silver This Year and Coming Years
Learning From 1970s Bull Market & 1975/76 Price Collapse
Bail-Ins, Sovereign Debt and Currency Devaluations

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