Daily Equity Report
Fri, 18 Jun 2010 - 20:40 Daily Equity Report *Gold in US dollars* The chart of the day site today reflected a long term chart of the gold index in US dollar terms. Over the last 9 years or so, gold having been in a 2 decade slide until 2001, has silently but persistently crept higher and higher in US dollar terms. As the price has moved up higher so it has started catching the attention of many global investors. Two other factors making gold attractive is the volatility in the currency markets together with the fact that cash in dollars and euro is earnings close to 0% interest. This is the commentary from chart of the day: As today's chart illustrates, gold has been in a strong bull market since 2001. The pace of that upward trend increased beginning in mid-2005. Following the financial crisis of late 2008, gold surged once again. While gold made another record high today, it still trades significantly below resistance (red line) of its upward sloping trend channel. In the end, with gold currently trading near $1,250 per ounce, gold has more than quadrupled in price during its nine-year bull market. Gold price in US dollars Gold in itself is not an easy asset to value, given the lack of cash flows. However given the trend and the fact that gold has not become hugely speculative as yet, there is a possibility that the upward trend continues for the foreseeable future. Have a great weekend Kind regards
Ian de Lange
info@seedinvestments.co.za Fri, 18 Jun 2010- 13:34 --------------040509020307010206070003 Content-Type: multipart/related; boundary="------------030000090109090001060104" --------------030000090109090001060104 Content-Type: text/html; charset=ISO-8859-1 Content-Transfer-Encoding: 7bit
Daily Equity Report Gold in US dollars The chart of the day site today reflected a long term chart of the gold index in US dollar terms. Over the last 9 years or so, gold having been in a 2 decade slide until 2001, has silently but persistently crept higher and higher in US dollar terms. As the price has moved up higher so it has started catching the attention of many global investors. Two other factors making gold attractive is the volatility in the currency markets together with the fact that cash in dollars and euro is earnings close to 0% interest. This is the commentary from chart of the day: As today's chart illustrates, gold has been in a strong bull market since 2001. The pace of that upward trend increased beginning in mid-2005. Following the financial crisis of late 2008, gold surged once again. While gold made another record high today, it still trades significantly below resistance (red line) of its upward sloping trend channel. In the end, with gold currently trading near $1,250 per ounce, gold has more than quadrupled in price during its nine-year bull market. Gold price in US dollars
Gold in itself is not an easy asset to value, given the lack of cash flows. However given the trend and the fact that gold has not become hugely speculative as yet, there is a possibility that the upward trend continues for the foreseeable future. Have a great weekend Kind regards Ian de Lange
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