Seeking Alpha

Bullion's bull run set to continue - analysts

  • The recent increase in the price of gold, which has climbed by over 14% since dropping to almost $1,200 an ounce in June, has a strong basis and is set to continue, analysts believe.
  • Some of the reasons for bullion's rise include heavy demand in Asia - and particularly India, where the insatiable appetite for gold is doing nothing to help the country's current account deficit - turmoil in emerging markets, high-priced U.S. equities and the under-performance of commodities in general.
  • Another factor is a possible future constraint on supply as miners cut back on projects because gold has become more expensive to produce than it's worth.
  • Gold futures are now +0.3% at $1,375.50
  • ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI
Comments (8)
  • Philip Marlowe
    , contributor
    Comments (858) | Send Message
     
    There is always an analyst saying gold will go through the roof, but I do not believe it. Currently, the street price of gold in the US is going down and the US mint's sales of gold coins plummeted. Note that up to the last couple of weeks gold bulls used to tout the high US consumer demand as a reason for gold's resurgence. Well this is no more.

     

    So now Asia is the new hope. I seriously doubt it. India will keep taxing gold, so there will not be a great increase of demand there. In china, investors will start getting out of gold as the economy improves (which is what happened in the US). Yeah, maybe inflation in Indonesia will cause some people that do not have access to currency markets to buy gold, but Indonesia is not big enough or rich enough to support the world gold markets.
    23 Aug 2013, 04:42 AM Reply Like
  • Investor Talkroom
    , contributor
    Comments (462) | Send Message
     
    Philip, you should take a broader look at gold. Using supply and demand for gold doesn't work. Nobody is using supply demand curves to forecast Forex its just doesn't work. Demand for money is infinite which is same that there is no demand for money.

     

    What you should look at is:

     

    1) US deficit still huge, started to shrink but looks like their taking us to another expensive war.

     

    2) $17T debt and growing. How much is interest on $20T debt at say 5%. Will we be able to afford to make interest payments?
    3) Unfunded liabilities around 200T

     

    4) No economic recovery in the US. Households incomes are falling, deleveraging never happened. Recovery is not possible.

     

    So what is our plan for fixing debt and economy. Politicians already made the decision: It is - Inflate or Perish.

     

    Debt ceiling clown show might provide a short term catalyst for gold.
    23 Aug 2013, 08:48 AM Reply Like
  • bertrandrighi2
    , contributor
    Comments (37) | Send Message
     
    Investor talkroom, d'you think Phiplip Marlowe to be of good faith ?
    I bet not. I bet he knows what you are saying.

     

    I bet he just carries a "message", nothing else.
    He dares say EXACTLY opposite of the truth on all topics he's touching. ALL of them.

     

    " Lie, lie, more and bigger. There always will be something left over".
    Arthur GOEBBELS, in charge of Ministry of Propaganda, 3rd German Reich
    23 Aug 2013, 10:12 AM Reply Like
  • 6151621
    , contributor
    Comments (1079) | Send Message
     
    Analysts like jumping on the bull-side bandwagon; I understand if they are alone then they are in trouble if they are wrong.
    23 Aug 2013, 12:18 PM Reply Like
  • GlobestarFX
    , contributor
    Comments (2) | Send Message
     
    Its only a matter of time..The US can't pay their debts..So they print money..This in returns lowers the value of a dollar...The demand for the dollar will plummet as well...

     

    The supply of gold is shrinking but the demand is increasing....

     

    HMM !!!! price appreciation in Gold and Silver is the only outcome I see eventually...

     

    And since the GLD is not back 100% in Gold...It will lag against other funds, stocks, and ETF's that are back by 100% of the yellow metal...
    25 Aug 2013, 07:25 AM Reply Like
  • Jin Graves
    , contributor
    Comments (2) | Send Message
     
    So if the GLD ETF isn't that good which ones are you mention here backed 100% in gold?
    26 Aug 2013, 02:31 PM Reply Like
  • bertrandrighi2
    , contributor
    Comments (37) | Send Message
     
    Physical gold is backed up 100%, that's it. Besides you can store it under your bed, so you know it's here...
    Eventually buy an AR 15, and a lot of anti-zombies ammos...
    27 Aug 2013, 08:25 AM Reply Like
  • GlobestarFX
    , contributor
    Comments (2) | Send Message
     
    PHYS, PSLV is 100% back by gold and silver and it is stored outside of the banking system. I am preservation of wealth just in case we experience a financial meltdown...
    2 Sep 2013, 06:02 AM Reply Like
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