Underlying Notion: My 2 Cents on the Current Gold Price
Gold investors who have their gold value in the plunge are hoping for the gold price to recover & go up once again. Now, according to the economy law of supply & demand, new investors considering gold is now wary after the significant gold price-drop hence the demand is low for gold. The anticipated low demand for gold means that the gold produced to satisfy the demand before the price drop previously is of over supply.
Another Gold Price Plunge Makes Sense
Making some sense, the gold price will drop some more but not as much as the first drop. You may consider the event much like an earthquake aftershock. Some of the new investors will wait for the price second price drop, which presumably & precariously starts soon while other new investors will wait for the gold price to recover to the $900 level before buying gold.
It makes sense to anticipate that until the new investors do not enter the gold market then the price of gold will continue its second plunge downwards until the new investors see the opportunity in buying cheap gold. New gold investors are expected because of the loom of economic recession in the US, Europe, & Japan. Investors need insurance; even with buying gold.
Gold Price Had Gone Down as Expected
The gold price had gone down as expected since the past two days starting 10th September 2008 from about $800 to about $736 at its lowest point. The question now is the fall of gold price over? On the short term, it looks to be that the gold price has had enough of free falling. Needless to say, some people were probably caught disastrously by what looks to be the bottoming out of the gold price on a particular night. The bottoming out indeed creates crazy waves on the technical charts.
The gold price on the five minute chart was buckling up & down violently, fighting off any further downward pulls. In one final attempt of descent, the gold price almost reached to about four dollars its lowest previous price, only to slow down progressively, & began turning the other way round. Thereafter the gold price had begun a larger whipsaw condition, pulling the prices from edge to edge of the five minute chart.
Published by Cэвбо
From peanuts to peanut shells to peanut dust to nothing at all. I'm outta here. View profile
- China Will Push Gold Prices Higher by Investing Its Huge Currency ReservesChina has over 1 $trillion in currency reserves. They are in the early stages of replacing those reserves with gold. This buying could push the price of gold above $2,000 in the next few years. Gold prices could r...
Panning for Gold at Sovereign Hills in Ballarat, AustraliaSovereign Hill is a great place to spend an afternoon reliving the days of Australia's gold rush.
Sean Price Speaks with Associated ContentFormally known as Ruck of Heltah Skeltah and Boot Camp Clik fame, Sean Price is resurrected with Jesus Price Superstar. Read about his new album, family and his future plans
Price Matching Hurts Consumers by Creating Price-Fixing CartelsCartels are illegal in the United States, but price matching is legal. Essentially, both are the same. Price matching creates a de facto cartel that raises prices for consumers.
- The Best US Gold Coins
- Scott's Liquid Gold Wood Cleaner & Preservative
- Review of Gold Bond Ultimate Healing Skin Therapy Lotion
- 10 Tips on How to Price Your Product or Service
- The Price of College Textbooks
- 2006 World Series of Poker Winner Jamie Gold Pockets $12 Million
- Indian Head Gold Coin Brings History to the Marketplace