As June closes, the gold market seems to be less inviting for those who are considering on investing. “Gold turned out a terrible quarterly result, off 23.3% for the deepest rout since modern gold trading began in the 1970s,” CoinNews.net reports.
Despite gold’s rough performance at the close of the first half of this year, many are still convinced that gold investments are not going down the drain. In fact some are even adamant about how everyone is jumping too early on the bandwagon of disbelief.
Sites like Bullionvault.com, Forbes.com, and MarketWatch are constantly on the update when it comes to gold prices and its performance. And as Jan Skoyles of the MarketOracle.co.uk bluntly expresses, “Since the middle of April we have all heard the gold bear cry of ‘it’s over, gold is done with…the bubble has burst.’ But not many of these so-called expert commentators have really looked into the strength of demand in the East.”
Skoyles firmly believes that despite the bad performance of the economic markets in the US and Europe, one should still consider the strengths and high demands of the Eastern Hemisphere. Quoting another financial expert, Jeff Nichols, Skoyles writes, “gold bears ‘have a fairly provincial view and limited understanding of gold’s increasingly bullish long-term fundamentals.’ (That is), they are ignoring more than half the world.”
Going back to the rudimentary reason why gold investments are done as discussed in a previous article entitled Relation between Global Economy and Gold, deciding not to invest in gold at this erratic time goes against the definition of investing in gold as a hedge or safety. Of course, one must analyze all the forthcoming situations before investing.
As Skoyles details in his article, there are still the Asian Markets that need to be considered. And as CoinNews points out, “Gold for August delivery traded higher Friday by $12.10, or 1%, to settle at $1,223.70 an ounce on the Comex in New York. The daily gain, supported by improved physical demand, was a first for the yellow metal this week.”