Gold Investing Holds Strong

Long-term investors are losing money. But not in gold. Those who bought stocks in early 2007 and selling now are suffering heavy losses. Gold Investments continue to see gold reaching at least $1,200 per ounce in 2008.

Further strength in sterling gold and parity with the euro in the next 2 to 3 years seems likely as the UK economy is beset with many of the same fundamental weaknesses that afflict the U.S. Many analysts suggest bullion could rise even further in the future, as more people rush into buying it. Though the price may retreat in the short-term due to profit taking. Analysts expect the interest rate cut will be larger than the previous ones and is likely to further depress the already weak US currency.

There was further dollar strength yesterday and the usual first day of quarter equity bounce saw further selling pressure on gold which fell as low as $870 prior to recovering later in the New York session. The close below $905 is negative from a technical point of view for gold?s short term prospects and may result in the need for some more consolidation.

Investors need to place their money in a real inflation hedge, and that is gold. The CDP is an investor coalition that requests information on corporate risks and opportunities associated with climate change from more than 2,000 companies globally. Of the 204 insurance groups that were asked to fill out the survey in 2006, four were Canadian property and casualty companies or brokers (four life insurance companies were also polled). These investors can now get regular income by renting their shares to FIIs and other investors who short sell shares in the stock market. Short selling refers to selling shares without having possession of the same.

When you see prices rise with things like gold and oil, it's not so much that the value goes up, it's that the value of the dollar is in the tank because the Federal Reserve (which is no more Federal than Federal Express) pumps truck loads of money into the economy to do things like fight wars, make home loans easier than they should and so on. By printing so much money, it just makes it worth less or should I say worthless. The broker also slashed his price target to $23 from $26. Technical indicators for the stock are neutral but slightly deteriorating. Some ETFs have positioned themselves to profit when prices of the investments they track fall. Or investors can use traditional ETFs as short-sale candidates.