Gold usually rises in times of fiscal uncertainty, especially when such times lead to a big increase in money-printing and very low interest rates. Further price drivers are international crises, such as the Israel/Iran situation, the Syria/Turkey border incident, and the longer-term threat that the Muslim Brotherhood -- which controls Egypt -- will seek to extend its influence in the oil-rich countries in the Middle East tinderbox.
On the supply side, gold miners are running out of high-grade ore, there are problems with labour in South Africa, and both working and capital costs have risen. Central banks have stopped selling their gold and become big buyers. A number of problems are close to tipping point. ...
With a supreme effort, we might manage to solve one of these big problems and perhaps muddle through another one or even two. However, taking them together, the cumulative risk makes it highly likely that a few of the tipping points will be reached. Unfortunately, there is little investors can do other than sit it out and prepare their portfolios according to their hopes and fears.
On the supply side, gold miners are running out of high-grade ore, there are problems with labour in South Africa, and both working and capital costs have risen. Central banks have stopped selling their gold and become big buyers. A number of problems are close to tipping point. ...
With a supreme effort, we might manage to solve one of these big problems and perhaps muddle through another one or even two. However, taking them together, the cumulative risk makes it highly likely that a few of the tipping points will be reached. Unfortunately, there is little investors can do other than sit it out and prepare their portfolios according to their hopes and fears.
More information can be found online at http://www.goldbullionadvisors.com
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