Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

America's "Safest Long Term Investment" Is Gold - Gallup

IMG Auteur
Published : May 02nd, 2012
1294 words - Reading time : 3 - 5 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

Gold’s London AM fix this morning was USD 1,652.50, EUR 1,257.71, and GBP 1,020.44 per ounce.


Yesterday's AM fix was USD 1,661.25, EUR 1,253.02 and GBP 1,024.70 per ounce.


Gold fell $4.40 or 0.26% in New York yesterday and closed at $1,661.70/oz. Gold rose to over $1,670/oz in early US trading prior to selling capped price gains and the price then fell back to the $1,660/oz level.


Gold gradually fell during trading in Asia and this weakness has continued in European trading where gold looks set to test the $1,650/oz level or $1,646/oz, the price low after the $1.24 billion sell trade on Monday.




Cross Currency Table – Bloomberg


Gold’s weakness yesterday may have been due to the positive manufacturing data in China and the US leading to traders being hesitant to commit to the long side.


The slowdown in demand from India and data showing holdings in ETFs dropped to the lowest level in 3 months and US Mint monthly gold coin sales fell in April falling to the lowest level since June 2008 may have may have also tempered enthusiasm.


However, central bank demand is likely to be continuing at these levels and central banks are almost certainly still buying on the dips. Bullion coin and bar demand and ETF demand is likely to pick up in the coming weeks when the global debt crisis deteriorates again.


Data from Europe this morning was very negative with Italian industrial production (PMI) falling off a cliff, German manufacturing shrinking, Irish exports faltering on slower global growth, the Greek economy still floundering and Spanish unemployment figures appalling.


The Chairman of the White House Council of Economic Advisers, Alan Krueger, said yesterday that the European crisis poses “some risk” to the US and global economy. Four US central bankers said that more stimuli probably won’t be needed. The Fed bought $2.3 trillion of bonds in two rounds of so-called quantitative easing from December 2008 to June 2011 thereby debasing the dollar.


HSBC Securities on April 29 downgraded its forecast for average gold prices this year to $1,760/oz from $1,850/oz, with analyst James Steel citing “a steep reduction in market expectations of further quantitative easing or other monetary stimulus.”


America's “Safest Long Term Investment” Is Gold - Gallup


Americans feel “gold is the safest long term investment” today, a Gallup survey has found.


Gold was favoured over four other types of investments perceived as the best long term choice for American investors today.


28% of the American public choose gold as their favoured investment of choice today.




Gold in USD – 3 Days (3 Minute) – Bloomberg


Real estate followed in second place, with 20% seeing it as the best long term investment.


Paper assets were less popular with savings accounts and certificates of deposits (CDs) tied with stocks and mutual funds at 19%.


Bonds came last at 8%.




This suggests that the American public may not be as uninformed when it comes to investing as is often suggested.


According to Gallup, "investing in gold has gained in popularity in recent years as low interest rates have made traditional savings instruments less attractive, and instability in the stock and real estate markets has undermined the mass appeal of those options."


"Meanwhile, the rising trajectory of the price of gold over the past several years apparently offers more of the returns and stability investors seek."


While some may find the Gallup poll findings worrisome from a contrarian perspective, it is not.




Gold ownership remains very low amongst the public in most of the western world.


The poll’s findings suggest that this may change in the coming months and years.


While surveys often show that people are favourably disposed towards and instinctually trust gold, there remains a massive lack of knowledge about how to “invest in” or buy gold for financial insurance reasons. This lack of knowledge and awareness leads to the low levels of gold ownership in the western world today.




Gold in USD (White), EUR (Orange) and GBP (Yellow) YTD – Bloomberg


The non-specialist financial media continues to rarely, if ever, cover gold. When it does cover gold it is often in a negative light – with frequent suggestions that it is a “bad investment” and a “bubble”. Also, gurus or experts are often allowed to voice their negative opinions on gold without seeking plurality of opinion and getting the other side of the argument.


There are rarely comprehensive articles looking at the best, most cost-effective and safest ways to own gold as there are with other asset classes such as bank deposits, bonds and equities.


This will change in the coming years when there is less of a bias against gold and a realisation of the importance of gold as a diversification, and gold is treated and covered in the same way that equities, bonds and cash are covered today.


OTHER NEWS


(Reuters Global Gold Forum)


It looks like some appetite for gold coins has returned in the United States, with 10,000 ounces of American Eagle gold coins sold on May 1, according to the U.S. Mint. That's already half the total amount recorded for the whole of April (though that was the weakest month in nearly four years).


(Bloomberg) -- India’s April Gold Imports Plunge to 30-35 Tons, Group Says


Gold imports by India, the world’s biggest bullion buyer, plunged to 30 metric tons to 35 tons in April from 90 tons a year earlier after higher import taxes weakened demand, an industry group said.


Demand remains dull in India as prices trade near record levels due to a decline in the local currency, Prithviraj Kothari, president of the Bombay Bullion Association, said in a phone interview today. Imports in 2012 are expected to be 700 tons to 750 tons, he said.


(Bloomberg) -- Comex Suspended Gold Trading in N.Y. Yesterday After Price Drop


CME Group Inc.’s Comex halted trading in gold futures for about 10 seconds yesterday at 8:31 a.m. after prices declined, said Damon Leavell, a spokesman in New York. The so-called Stop Logic halt, engineered by the exchange, is designed prevent excessive price movements, according to the Comex website. Gold futures for June delivery, which settled 60 cents lower at $1,664.20 an ounce yesterday, dropped about $14.50 shortly before 8:30 a.m. local time, data compiled by Bloomberg show.


The market was given a short period of time to regain its equilibrium, Leavell said in a telephone interview. CME declined to comment on the size of the trade that led to the halt.


“The stop-logic functionality happens across all markets at different times and can even happen several times in a day,” he said.


Comex halted trading after Comex recorded a transaction of 7,500 gold futures during one minute of trading, Dow Jones reported earlier.


(Bloomberg) -- BNP Paribas Lowers 2012 Gold Forecast to $1,715 an Ounce


BNP Paribas SA lowered its 2012 gold forecast by $140 an ounce to $1,715, according to an e-mailed report from the bank today. It cut its silver estimate for this year by $4.40 an ounce to $33.10.


For breaking news and commentary on financial markets and gold, follow us on Twitter.


NEWS


Gold Still Americans' Top Pick Among Long-Term Investments - Gallup


Gold Weakens as Manufacturing Data Improves - Business Week


Gold retreats as US data eases economy worries - Reuters


Gold extends losses in electronic trading - MarketWatch


HSBC lowers 2012 gold forecast 5% to $1,760/oz - MarketWatch


COMMENTARY


Hillary Clinton’s Headaches Are Waiting in China - Bloomberg


Total US Debt Soars To 101.5% Of GDP – Zero Hedge


Embry - This is What I’m Doing with My Own Money Right Now – King World News


Too Stupid To Think… Too Paralyzed To Act – 24HGold


The “Mistake of 1937” - GoldSeek


Mark O’Byrne

Goldcore

 

 

Companies Mentionned : Bullion |
Data and Statistics for these countries : China | India | All
Gold and Silver Prices for these countries : China | India | All
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Why we should abandon the State
28 Julovertheedge
What a gigantic pile of horse excrement. Cherry pick everything that has gone wrong. Completely discount the hard fact that the author and ...
Iran Agreement Boosts Peace, Def...
26 Julkeith95
How about the US invading Afghanistan in 2001, Iraq in 2003 ... leading to the current unrest in the middle east while supporting the 'Saudi's' ......
Take Possession of IRA Metals We...
24 Julericgolub
Internal Revenue Code 4975 language suggests that whether the gold is held directly by the IRA or by an IRA LLC (which is nonetheless still subject...
Gold Miners Nearing Rebound
24 Julsonora69
Silver has already made a 50 cent down and up round trip as of 3:30. This is happening on a Friday, with the stock markets failing to make an advan...
Why Pensions Are A (Big) Black Swan
25 JulS W.1
No (pensions) are not a black swan, which is totally random unforeseen event.
Iran Agreement Boosts Peace, Def...
23 Julsonora69-2
Doesn't anyone remember the Iran hostage crisis, when Iran held 52 American diplomats and citizens hostage for 444 days in 1979-1981. How about 198...
What Do Greece and Louisiana Hav...
23 Julovertheedge
"The US financial system isn’t any better. ... , Actual currency is just a little over $1.36 trillion. ..." And it is assumed that about h...
Why Are We Here?
23 Julovertheedge1
No "woe is me" here. Just another buying opportunity. Using leverage is not buying, it is borrowing. It ain't bought til it's paid off....
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Arianne Phosphate(Ur-Mo-Ti)DAN.V
Extends the Term of Warrants
CA$ 0.84-4.55%Trend Power :
Financings
Anaconda Min.(Au)ANX.TO
Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Sampl
CA$ 0.04+12.50%Trend Power :
Corporate news
Capstone Mining(Ag-Au-Cu)CS.TO
Second Quarter 2015 Financial Results
CA$ 0.97+7.78%Trend Power :
Financials
Taseko(Au-Cu-Mo)TKO.TO
and Soda Creek Indian Band Sign Participation and Cooperation Agreement
CA$ 0.65-1.52%Trend Power :
Corporate news
Tinka Resources(Ag)TK.V
commences 10,000 metre drill program at Ayawilca zinc project, announces new IP results & tar
CA$ 0.17+0.00%Trend Power :
Corporate news
Sandstorm Gold(Cu-Mo-Au)SSL.V
Files Early Warning Report
CA$ 3.16+0.32%Trend Power :
Corporate news
Crown PointCWV.V
Provides Operational Update and Announces Executive Change
CA$ 0.14+0.00%Trend Power :
Corporate news
Cardero Res.(Ag-Au-Cu)CDU.TO
Announces Acquisition of the Advanced Zonia Copper Oxide Project in Arizona
CA$ 0.01+0.00%Trend Power :
Corporate news
Vista Gold(Cu-Le-Zn)VGZ.TO
. Announces Receipt of an Additional A$5.9 Million Net Tax Refund Under the Australian Govern
CA$ 0.35+4.48%Trend Power :
Corporate news
First Majestic(Le-Zn-Au)FR.TO
announces friendly acquisition of Silvercrest Mines
CA$ 4.05-1.70%Trend Power :
Corporate news
Comments closed