Has the Perfect Gold Buying Opportunity Presented Itself?

With a strong dollar how long does plavix affect platelets (at plavix cost least for now) and seemingly fading systemic risk in the financial system, one writer explains why he believes gold is in a great position to buy.

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What exactly is behind gold’s fall in price? FinancialExpress author Vatsal Srivastava doesn’t see any new fundamental factors that could be dragging it down.

Srivastava instead points to several misunderstood circumstances acting as a deterrent to the price of gold. For example, precious metals investors have been dealing with some anxiety over the potential increase of interest rates in the U.S. – they fear a rate hike and any subsequent strengthening of the dollar that would go along with it. Yet Srivastava doesn’t believe there’s a consistent inverse relationship between gold prices and rates.

When interest rates were rising between 1985 and 1987, gold prices rose with them. But let’s not forget these were real interest rates – if http://tadalafillevitra-pharmacy.net/ the Fed does raise rates, there’s no telling when real interest rates will leave negative territory and by what margin, although it likely won’t be for a while.

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How about the period from October 2003 to October 2006, when real interest rates went from being negative to 3%, yet gold was giving investors a 60% return? Clearly, an interest rate hike isn’t quite the bane of the yellow metal that it’s made out to be.

There are other factors at work here, too. The fear of a Greek exit from the eurozone is dwindling as Europe plays something Srivastava dubs a “pathetic extend and pretend game”; a vardenafil hydrochloride Grexit is, he says, clearly inevitable. Also, China recently reported their gold reserves at much lower levels than anticipated, which drove some away from the yellow metal.

“The best time to buy anything is when it is hated the most,” Srivastava says. He also notes that, should gold be driven down by another $100 due to momentum, it will simply present investors with another “buying opportunity”.

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