Gold Price Crashes the $1,700 Barrier

Moderators: PinkDiamond, John

Post Reply
User avatar
PinkDiamond
Posts: 15411
Joined: Thu Jun 04, 2015 9:30 pm
Location: Ozark Mountains

Gold Price Crashes the $1,700 Barrier

Post by PinkDiamond »

At a time like this with uncertainty all around and the markets not knowing which way to go, it's not surprising that gold is surging; but will it stay this time, and what will happen as the markets level out and things return to normal? ;)

Gold Price Crashes the $1,700 Barrier
April 16, 2020 by Rob Bates

Image

"The spot prize of gold crossed the $1,700 barrier on Wednesday, and it’s now trading at its highest level in seven years.

This is the second time this month that gold has crossed the $1,700 benchmark; its spot prize crossed it briefly on April 6. But this time, it seems to have consolidated those gains. It opened Thursday morning at $1,717 at ounce, and at the time of publication, the spot price was trading at $1,736 an ounce.

Overall, the gold price has risen about 15% this year, and some analysts think that it will soon hit $1,800. That would be within view of its all-time record spot price of $1,923.70, which it hit in September 2011.

The gold price has been on the rise for more than a year. It crossed the $1,600 mark in February, and, though it subsequently retreated, the current COVID-19-fueled turmoil seems to have set expectations sky-high.

“The wind is very likely in gold’s sails,” said Rick Rule, president and CEO of Sprott, which specializes in precious metals, in a gold primer. “When gold moves it tends to really, really move.”

While analysts noted that gold has typically served as a safe haven in times of crisis, they also said that low interest rates and increasing government debt—not to mention the sorry state of the U.S. stock market—were fueling the metal’s ascent.

“The thing that’s moved the price of gold mostly in my career has been faith—or lack of faith—in the ongoing purchasing power of the U.S. dollar; most importantly the U.S. dollar expressed by the U.S. 10-year Treasury,” Rule said.

He noted that the federal debt, which had already hit a record $22 trillion before the COVID-19 pandemic, will be further ballooned by the trillion-dollar bailout efforts passed by Congress last month.

Ordinarily, this would be a time for retailers to reactive their trade-in business—which was a lifeline to many in the last decade—but many are now closed because of the coronavirus.

And while some may be tempted to conduct this business out of their homes, this carries not only possible security and health risks, but also legal risks.

“This is a terrible idea,” says Sara Yood, senior counsel of the Jewelers Vigilance Committee. “Almost all jurisdictions (both state and local authorities) have legal requirements around purchasing precious metal/gems/jewelry secondhand, including requiring ... "

https://www.jckonline.com/editorial-art ... 0-barrier/
PinkDiamond
ISG Registered Gemologist


· ´¨¨)) -:¦:-¸.·´ .·´¨¨))
((¸¸.·´ ..·´ There are miracles left for you to do .... -:¦:- -:¦:-
-:¦:- ((¸¸.·´* It all begins inside of you. ;)
User avatar
SwordfishMining
Posts: 4216
Joined: Fri Jun 05, 2015 3:06 pm
Location: Denio, NV USA
Contact:

Re: Gold Price Crashes the $1,700 Barrier

Post by SwordfishMining »

Some call it conspiracy, others are just trying to profit out of the chaos. And an investment advice source.



And a man who had made a fortune in metal mining investments.
Silver is more industrially critical and in shorter supply.

I'll jump over my shadow. https://www.virginvalleyopal.com"
Opals & more at my ESTY store https://swordfishmining.etsy.com"
Post Reply