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Gold investment information

Gold price started climbing after it hit the bottom of $250 per ounce in the year 2001. Since then, the price of gold quadrupled by March, 2008 which reached a historic high of $1,033 and there started the correction. When we look into this more in detail, as of April 2006, the price of gold went up 40% for about 10 months since July, 2008. There was a correction period of about 1 years and then the price started climbing again from June 2007 to March 2008. There was another 9 months of price correction afterwards. Through the December price increase, the price set above the 10 moving average line. We can clearly see that the current price is moving in an upward trend between the low point and high point. We can see the same upward trend in the RSI chart above the monthly bar chart, MACD below the monthly bar chart, and the stochastic chart is all the same. This means that we're finishing the 9 months of correction period since the price hit the high in March 2008 and moving higher. Technically, this indicates that the price of gold is going to be in an upward trend in 2008 consistently.



The Gold Rush began around 1848 and 1849 in California by those who came to mine gold. One of the pioneers of this movement was James Wilson Marshall, a carpenter and sawmill operator. After some gold nuggets were found along rivers in California, people all over the country who heard the news started gathering to find gold. In 1848, gold nuggets were found at the bottom of river branches. After hearing rumors of this discovery, many even left their careers and set out to find gold. Not only Americans, but also people from Europe, Central & South America, Hawaii, and China began immigrating to California. The total number of immigrants is estimated at nearly 100,000. Some came by ships travelling around the southern tip of the American continent. Others came from New York through the Panama Canal and/or the Pacific Ocean. Some even crossed country on foot. The people who came during the period were called, the "Forty Niners" and they found albeit $550 million worth of gold from year 1848 through 1858.


One can imagine how much $500 million worth of gold would be if converted into today's dollar value. Today, we see the signs of another Gold Rush. In 2006, one troy-ounce of gold was worth $450. It has grown in value to $1,000 in 2008. Many have begun buying gold, causing the gold price to soar. Since there are people coming to the New York Mercantile Exchange to buy gold expecting the gold price to soar again after seeing the dollar value coming down rapidly, we can say that the new modern day Gold Rush is starting once again. What's important here is that when our currency is showing weakness, the economy becomes more uncertain, and the Gold Rush becomes a natural phenomenon.

Gold Investment, Depression, and Fear

We should start investing in gold. The trend of "Buy gold and hold" has started. There is a world-wide trend in investing in gold. On September 17th in 2008, the price of future gold for December in India broke $870 mark per troy ounce. There was a shocking $90 increase in the gold price which was an 11% increase in a single day. This was the first time that we saw this phenomenon since 1980, January 29th when the price of gold shot up to $64 in a day. About 430,000 shares of Gold ETFs, SPDR Gold share, were traded on that day. This indicates that regular gold investors' demand is soaring through the roof...

It is highly probably that the upward trend of gold price would continue. The author described the reason in a column in the E-Daily journal. He warned that the possibility of a world-wide economic crisis caused by the financial crisis (triggered by sub-prime loans) is very high. He also predicted that the difficulty of financing will cause the inability to pay junk bonds. This will cause a series of financing troubles triggered by the credit swap market crisis.

Usually, this would motivate fund managers and stock analysts to look for the chance of buying cheap. But, nowadays, they are confessing that they don't know what's going to happen. Since we never experienced this type of world-wide economic crisis before, we have no idea how big the impact would be, how long it would last, and how widely and broadly it would spread. Some say that they can't in any tangible way overcome this crisis.
At the same time, the author recommended that the best way to maintain and sustain ones wealth is to invest in commodities such as gold since the uncertainty of the current crisis might cause the value of currency to become worthless as proved by history. He still believes the idea. For this reason I'd like to see more people joining the rank in gold investment. The reason is that there is no future or wealth without sustaining the wealth and investment you now have. God is the most secure and certain investment insurance.

In the last few months, the FRB has printed more than 1 trillion dollars in order to provide tens of or even hundreds of billion dollars through many financial programs such as TARP resulting in the devaluation of US dollar. This might bring the value of the dollar to fall even to the point of becoming worthless. Considering this trend and prospect, according to the past trend, the price of gold might go up even to $2000 or $3000. Of course, there might be some corrections once in a while, but in the long run, we would see a huge profit. It might take a long time until we see the next chance to be able to invest in gold and sustain our wealth. We might even be ready to prepare ourselves and persevere to overcome this seemingly never ending crisis and fear through gold investment.