The Eurozone has no quick fix-me-up. And to top it off, the United States, which
is not faring any better is going to their aid when we need our own help
desperately. It's all out in the open now…we are rescuing the Eurozone by
way of dollar swaps with the European Central Bank. What is going on with gold
then? Shouldn't it have taken that and soared with it? Well, there are some
straightforward reasons why gold is not escalating. The number one defense here
is what occurred with MF Global. It was the seventh largest insolvency in United
States history which compelled a high quantity of liquidation of commodities
futures contracts, implicating the yellow precious metal as well. Most
institutional investors found themselves up against a wall and were obligated to
sell regardless of their personal wishes. It is just the same when large
downfalls in the stock market can impel funds and other principal investors to
sell a little gold to boost the cash level for margin calls or accommodate
recovery requirements. Another justifiable excuse as to why gold is not where it
should be is due to the dollar's climb. The capital that is bolting from the
Eurozone has to find its place such as in US bonds, but first that implies an
exchange into dollars which explains the dollar's increment. An influential
factor that is affecting gold stocks is that it is tax-loss selling season.
Actions are guided by which ones are best advantageous in reference to taxes.
Just as well, funds sell their best winners to shut in headway for the year and
make quarterly reports look more profitable. It is because of the
afore-mentioned reasons that gold is in stagnant waters. That does not mean that
gold is unexpectedly considered an unproductive security asset. It also does not
imply that most of the world's legal tender is no longer being reduced in
value and not that sovereign debt world-wide affairs are being worked out, and
definitely not that interest rates are encouraging. No, no, no…the essential
wherefores of being the proud owner of gold are still flawless. The rest is all
a show. Don't get caught up in it. If we look at gold 's current price feat
and put it into proportion, we find that it climaxed on September 5 at $1,895
and since then has been backsliding for about ninety days. Nevertheless, place
your undivided attention towards the bull market's main three-month correction
in correlation to the most crucial inclination. It went like this: The precious
yellow metal dropped 20% from August 1 to October 31, 2008 which was the largest
cascading descent in our recent bull market. Notwithstanding, it ultimately went
beyond our expectation albeit many investors and industry buffs believing it had
reached its highest point. The closing quarter of 2011 ended behind 5.5% over
the former quarter. The advice here is to not allow the present to influence the
future where markets are concerned. Short-term volatility and long-term forces
are two totally different arenas and must be separated accordingly. If you only
listen to what is occurring now, you will eventually make decisions that you
will regret in the future. We are all aware that prices could trade lower which
is why capital is stashed. When this bull market culminates, our current
pullback will most likely resemble much higher prices in the prevailing months
and years. Again, this is why you must take advantage of the current gold
price…it's a steal. Bottom line is to remain calm and not wriggle too much
in the short-term. It's looking out over the horizon where you will find the
gold en rainbow. Tags: Current Gold Price, Current Price Of Gold , Gold Prices
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