• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • NORTH AMERICA EDITION
      Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • NORTH AMERICA EDITION
      North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    gold investing

    Has the price of gold reached its peak?

    Investing News Network
    Jan. 17, 2011 03:43PM PST
    Precious Metals

    Are investors gaining confidence in the economy by taking their money out of gold, or is the lowered gold price a correction in a continuing upward trend?

    By Damon van der Linde – Excusive to Gold Investing News

    Gold prices are currently in a slump, coinciding with expectations that the economy is the recovering in the U.S. and the European Union. Is this an indication that investors are gaining confidence in the economy by taking their money out of the historically safe gold and putting it in more speculative ventures, or merely a small correction in a continuing upward trend?

    In the second week of January, Bloomberg reported that gold fell on the New York Stock Exchange to the lowest settlement price in seven weeks on speculation that European Union leaders will stabilize the region’s economy, eroding the appeal of the metal as a haven.

    The article quoted Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter, who said that gold was “toppy” and recommended cutting holdings of gold and silver by a third. “Gold has run its course for a while,” Gartman said

    In the wake of economic recessions which primarily hit Europe and the United States, investors began pulling their investments out of currency and putting it into gold. In December 2010, gold prices in New York hit an intraday record high of $1,432.50 per ounce. As of January 14, 2011, the price of gold closed at $1,361.80, a decrease of about 5 percent. Now, analysts are speculating whether this slump will be part of a long-term trend in the midst of an economic recovery, or a simply a small correction in the market.

    In an interview with The Gold Report, Mark Lackey with Toronto-based financial services company Pope & Co. predicted that although there may be some correction in the price of gold in the near future, he expects this should really only be a short-term decline. “I don’t think the strength of the U.S. economy is so much an issue with gold,” said Lackey. “The bigger issue is that investors will look at the debt problems in the U.S. and ask themselves how those are going to be resolved. The underlying factor is that some investors in the world aren’t comfortable with any paper currency and they’re more comfortable owning gold.”

    Meanwhile, others are even predicting gold will continue its upward trend, possibly reaching $2,000 in the near future. In a speech at the Empire Club in Montreal, Nick Barisheff, CEO of the Bullion Management Group gave his outlook for gold in 2011 as being positive, based on three longer term “irreversible trends” he say will likely continue to put downward pressure on currencies resulting in upward pressure on gold for decades: Central bank buying, movement away from the U.S. dollar, and China.

    “I will say that both mid-term and long term trends are in place to ensure Gold and Silver will continue rising through 2011 and well beyond,” Barisheff said, predicting that gold prices will reach between $1,700 and $2000 in the coming year.

    gold investingeuropean unioneuropeoutlook for goldchinaunited statesmark lackey
    The Conversation (0)

    Go Deeper

    AI Powered
    NYSE:TAHO

    Maria Smirnova: The Silver Market Today and How to Pick Stocks

    Will Silver Outperform Gold? Part 1: Silver vs. Gold to Date

    Will Silver Outperform Gold? Part 1: Silver vs. Gold to Date

    Latest News

    Angkor Resources Advances Community Development In Ratanakiri, Cambodia

    NevGold Announces Updated Open-Pit, Heap-Leach Gold Mineral Resource Including 1,186,000 ozs Indicated and 548,000 ozs Inferred At Nutmeg Mountain in Idaho

    Sun Summit Strengthens Cu-Au Porphyry Potential at the JD Project, Toodoggone District: Defines an Open-Ended 8.5 km Long IP Anomaly

    Zeus Resources: Unlocking Morocco’s High-grade Antimony in a Tightening Supply Market

    AuKing to Acquire 100% of Cloncurry Gold Project

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    Lahontan Gold Corp.

    LG:CA

    Zeus Resources Limited

    ZEU:AU

    Earthwise Minerals

    WISE:CC

    Angkor Resources

    ANK:CA

    Prince Silver

    PRNC:CC

    Fortune Bay

    FOR:CA
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES