The Associated Press reported that gold and silver are responding to an improved U.S. economy by losing ground in the investment market. Since the start of the year, gold has dropped nearly $50 per ounce, measuring a decline of about 3.5% while silver has fallen by $2.31 per ounce, or 7.5%.
Some experts are responding by beginning to question the continued duration of the record interest in gold and other precious metals. They’re looking for signs that the bubble might pop in the face of predictions about gold’s strength.
Looking at Safety?
In their article, the Associated Press looks at gold and silver prices and suggests that as a consequence of the potential comeback in the U.S. economy, investors are willing to risk abandoning safe haven investments in order to seek out something a little more risky.
During the recent years of economic uncertainty, many investors responded by moving their funds into precious metals like gold and silver. Now that things are looking up, investors are reconsidering that choice in order to seek out more lucrative investment opportunities.
Looking to the Future
It is only the third week of 2011, however, so it remains to be seen whether this movement is real or perceived. No doubt, the state of the economy will give us some hints.
After a decade of stellar performance for gold, we may need to reassess based on the changes in the world economy, if not the production levels of the metal itself. In the meantime, however, gold will remain the commodity to watch and enjoy among investors everywhere.
Since sheeples got no brain…how could they own real kg gold bullions??? Therefore, their brians have been abandoning before they own gold…well…they don’t coz, they pretend GLD, GDX, HUI is gold bullion….
hahahahahaha Please abandon your gold in my direction!!
AP Huh?
“Now that things are LOOKING up”??
“Now that things are looking up, investors are reconsidering that choice in order to seek out more lucrative investment opportunities.”
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It’s exhilarating to see this much stupidity masking as analysis in one short sentence. Check it out: “Now that things are looking up…” S/he must be talking about the bankers guaranteed profits. Hey, out here in Real World, it still sucks big time. “…seek out more lucrative investment opportunities.” Why sure…since there are literally dozens of asset classes that have gone up for TEN FREAKIN’ YEARS LIKE GOLD AND SILVER HAVE! This is why the news services is call the ASSociated Press. You’d have to be a total ass to buy this hypothesis.
I’m thinking that the apparent turnaround of the US economy might be giving investors a little more ‘balls’ so to speak, but I don’t think that it will last. I still firmly believe that gold and especially silver bullion, along with other precious metals are still undervalued and will continue to rise this year.
As we see more reckless spending from the government, uncertainty in the economy will become more common place and then you will see people running back to save havens like gold and silver bullion for investment.