Gold finishes higher – a day worth noting
Gold finished the day higher – up $6 at $1331. Gold doesn’t always do well when the stock market tumbles, but it did well today, and the fact that it did will not have escaped the notice of a good many market analysts. Today’s upside also broke precedent with another oft-repeated, but false premise – that gold responds negatively to rising interest rates. As such, though nothing to write home about in terms of dollar gains, it was a day worth noting for precious metals bulls. Silver also finished in positive territory – up 6¢ at $16.75.
Quote of the Day
“We have found that gold typically thrives amid deeper, longer-lasting and fundamentally driven bear markets, which are usually associated with a deteriorating macroeconomic outlook. Alternatively, gold’s performance is usually tepid when equities rise. A good analogy is home insurance: homeowners pay an insurance premium each year hoping the house doesn’t burn down, but if it does you redeem the policy. Here, we see gold’s “insurance characteristics” as becoming increasingly relevant for investors. But even if the insurance is not needed, gold could still offer value. If the US dollar slides (which we expect), emerging economies become wealthier while mining costs increase. Prices could therefore advance irrespective of US inflation, making gold more than just an insurance asset.” – Wayne Gordon, UBS Wealth Management
How to choose a gold firm
A quick guideline for beginning investors
It is surprising how many prospective investors simply dive into gold and silver investing without much in the way of a consumer inquiry. That lack of simple due diligence has ended up costing a good many investors thousands of dollars, and sometimes even hundreds of thousands, before the damage is detected.
It might be the most important decision you will make on the road to becoming a gold and silver owner.