Gold: Time To Buy Now?

Time To Buy Gold Again

Nichols from American Precious Metals Advisors believes that gold prices over the next three to five years could surpass the 2011 highs. He stressed, however, that gold buyers need to be patient. "It's not clear we will have a quick turnaround," he said. Gold buyers sell as quickly as they buy Gold got a boost last week after Fed chairman Ben Bernanke said U.S. monetary policy will remain "highly accommodative" for the foreseeable future. The remark lowered expectations that the Fed will begin to cut back on its $85 billion-per-month bond-buying program this year. "I think the Fed is being overly optimistic and won't get around to tapering this year," said Chuck Butler, president of EverBank World Markets. "If that's the case, then I think gold will really start to rebound." Butler said gold prices could climb back to $1,450 an ounce if the Fed delays tapering. visit

Sentiment has become somewhat more bullish since gold has rallied14% off its recent low, but remains quite bearish. The buy signal is also supported by seasonality, with August, September, and October tending to be bullish for gold. That pattern may be tied to the history of gold often moving opposite to the stock market, and the months of August, September, and October have a history of being the most negative months on average for the stock market. Gold has been volatile during the rally so far, which is keeping skepticism regarding the rallys sustainability at a high level, potentially bullish. visit

GLD Gold ETF Analysis

Its considering allowing foreign financial institutions and companies that produce more than 10 tons of gold a year to import and export. We cant sell gold now in China produced in our overseas mines, said Lan Fusheng, vice chairman at Zijin Mining Group Co., Chinas largest gold miner by market value. We would definitely welcome this change. The company has projects in Tajikistan and Australia and produces 6 tons to 7 tons outside of China annually, Lan said. Government Reserves The Peoples Bank of China, which imports gold for foreign- exchange reserves, hasnt given an update on its holdings since April 2009, when they stood at 1,054 tons. Chinas government may have accumulated about 300 tons of gold to diversify the state reserves during the first six months of the year, said Philip Klapwijk, the founder of Precious Metals Insights Ltd., who spent 25 years monitoring the market. visit

Gold no slam-dunk sell in China as aunties pounce

I guess unless you were looking to buy protection against making money, owning gold in recent years has been little more than an expensive placebo (more on when to buy gold below). Regardless, many investors want gold to be part of their investment portfolio and feel that gold ETFs are a simple and superior vehicle for owning gold. There are a number of gold and gold-related ETFs. Although IAU has a lower annual expense ratio (0.25%), GLD (with its 0.40% expense ratio) has more assets under management. visit