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| Updated: Sep 18,2006 |
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Charles Kubach, Mine-Engineer.Com September 18, 2006 |
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Ah, yes, it is now fall, the leaves will soon be changing colors, and people
will begin thinking about the holidays. Among the golden and red leaves, will
be thoughts of golden trinkets, which will be purchased for the holidays.
Although gold jewelry sales have been off 20% from last year, it is expected
that the holiday season will be robust, accounting for increasing gold sales
to the same tonnage as last year. And if that occurs, it will indeed be a
golden new years for the yellow precious metal.
Savy investors, anticipating the holiday season, will begin seeking out gold positions, gold company stocks that promise greater returns than can be realized on the metal, and perhaps even a few golden trinkets for their gift lists. Gold has shaken off the doldrums of summer, and is now looking towards the new year, with anticipation. Will it be up or down? Considering the current price of $577/ounce, it will definitely be up. I look for gold to close out this year around $635-$650/ounce. Not the $1,000/ounce that some had predicted, but in a few years, it may very well achieve that four digit price per ounce. The current global supply of gold is pegged at about 36 years, at current consumption rates. And we all know what will happen as it begins to get closer to the end of new production of the yellow metal, the price will rise considerably. So for gold long term, how can one loose? For short term one can play the cycles of the market, sell when up and re-purchase when down. All markets are cyclical, there has to be a demand, and other conditions are in a constant flux, so the price for gold will likewise reflect these changes. There is a restaurant in Beverly Hills California that serves a dessert with 24 kt gold sprinkled on the top. So, one can have their gold and eat it too. I have tried this, and the gold has no taste, whatsoever, but the dessert was very good (if not over priced, like everything else there). For auto workers at the Ford plants, the holidays may not be too merry, but for gold bugs, they will indeed be happy occasions. -------------------------------------------------------------------------------- But that's just my opinion. Charles Kubach Mine-Engineer.Com |
