Gold. $1,400 a month ago, now in the $1,330 range. Some may think of this as a buying opportunity. Me, not so much.
Historically 80% of gold production goes to produce things...jewelery for example. Apparently at the present time as little as only 40% of production is going to product production with the remainder going to investors and speculators such as the bullion funds which actually hold bullion instead of gold mining stocks. Seems as though supply is getting ahead of demand. One has to wonder what will happen to the price if speculators continue to accumulate while the market continues to fall off. Who are they going to sell to? Not me. On the other hand, an economic meltdown could cause a rush to gold for safety.
For the time being, I'll stick to my stocks and look for an opportunity in copper. Big fundamental difference between gold and copper. While gold is being stockpiled, the price of copper is at an all time high as China's insatiable need is outstripping demand.
Historically 80% of gold production goes to produce things...jewelery for example. Apparently at the present time as little as only 40% of production is going to product production with the remainder going to investors and speculators such as the bullion funds which actually hold bullion instead of gold mining stocks. Seems as though supply is getting ahead of demand. One has to wonder what will happen to the price if speculators continue to accumulate while the market continues to fall off. Who are they going to sell to? Not me. On the other hand, an economic meltdown could cause a rush to gold for safety.
For the time being, I'll stick to my stocks and look for an opportunity in copper. Big fundamental difference between gold and copper. While gold is being stockpiled, the price of copper is at an all time high as China's insatiable need is outstripping demand.
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