Gold Price: Uncovering the market dynamics that made gold soar to new heights

Gold Investment - 22 August 2011

Now that gold has reached the $1800 mark, it might be an idea to review the factors that affect the gold price and give some consideration to how gold will behave in the future. It might be said that right now is not the time to be trading in gold given the high price; trading in terms of trading paper gold, not in reference to physical gold ownership.

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Invest in precious metals today! Contact us for details.

Mining stocks have been underperforming for a while even though there are a few exceptions to this rule. This point is highlighted by the fact that in spite of being long on gold and short on mining stocks, people have made close to twenty percent this year alone. If mining is to be the investment of choice then investors should realize a profit by being long on mining stocks and short on gold. This is because the gains should perform better than gold.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Gold mining stocks are not gold, they are mining stocks and this can explain the underperformance to some degree. Should the market crash then there is no doubt that mining stocks will be sold as well. Over the last number of weeks this has been quite evident.

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