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Gold: Any Day Now . . .

Any day now, gold could find itself in a sustainable long-term uptrend – or not. What remains true is that near-term gold-price prospects remain uncertain with the continuing possibility of sizeable price moves in either – or even both – directions. What also remains true is the high probability that the yellow metal’s price will be considerably higher at this time next year – with a sustainable long-term upswing already underway. ...

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Gold: Short-Term Risk vs. Long-Term Opportunity

Autumn has been a cruel season for gold investors. In contrast to some anticipated seasonal bump up, the yellow metal’s price has been driven lower by bearish technical indicators and excessive negative sentiment among a small number of large-scale institutional speculators – bullion banks, hedge funds, program traders and the like – trading mostly in futures and over-the-counter “paper” markets for very short-term gains while remaining indifferent to the metal's long-term bullish fundamentals. Despite this dismal performance and continuing bearishness among many traders, gold should still ...

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Is NOW a Good Time to Own Gold?

As a business economist and gold-market analyst, I am frequently asked about the economic outlook and investment-market prospects.  Most of all, clients and friends ask “Is now a good time to OWN gold?” My answer is always the same: NOW is always a good time to own gold. Importantly, we own the metal because, over time, its inclusion in a typical savings and investment portfolio provides a variety of benefits: ...

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India: Propitious Times for Gold Ahead

We are soon entering a propitious period for gold in the annual calendar.  Historically, prices have moved higher as gold traders and buyers returned from their summer holidays. In reality it has been the approaching Indian holiday, wedding, and agricultural harvest seasons that have boosted gold demand and supported higher prices in world markets as summer draws to a close.With discouraging import duties and other anti-gold trade barriers still in place, it remains to be seen this year whether or not India will provide its usual seasonal boost to gold demand and prices in the world market ...

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Gold: Now is the Time

I’m frequently asked, “Is now a good time to own gold?”  I’m no “gold bug” but I am super-bullish on gold’s long-term prospects.  I believe now is an excellent time to invest in gold . . . and I advocate investors hold five-to-ten percent (and for some, sometimes more) of their investment assets in physical gold. Importantly, gold’s inclusion in a typical investment portfolio provides a variety of benefits – portfolio appreciation, diversification, reduced portfolio volatility, risk reduction, inflation protection, and more.  And, one does not have to expect some economic or political ...

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Gold: On the Verge . . . or Nearing a Cliff

Gold has had difficulty sustaining recent rallies and remains trapped in a $50 trading range.  At the lower end, incremental physical demand has so far kept the price above its recent floor around $1175 an ounce . . . but selling by funds and other institutional traders of gold ETFs and “paper” proxies has limited attempts to rally. Whatever improvement in sentiment and upward momentum that may have resulted from this year’s encouraging first-quarter start has now dissipated.  The longer gold lingers in its current range the more difficult it will be for the yellow metal to break out on the ...

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Gold-Price Weakness: More March Madness?

Frankly, I’ve been surprised by the recent decline in the price of gold.  I expected a stronger finish to the first quarter with gold prices somewhat higher – possibly even breaking out above the $1,400 an ounce level by the end of March. Instead, gold prices have softened considerably over the past couple of weeks – off nearly $100 an ounce from its mid-March highs and down three percent in just the past week.  On a more positive note, gold is still up 7.5 percent for the year to date. With gold now hovering around the 200-day moving average and short-term momentum now moving into ...

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A Quick Note on Gold Price Prospects

We are advising clients and subscribers to NicholsOnGold to expect another up-week for gold . . . driven largely by geopolitical anxiety over the conflict between Russia and Ukraine and the likely outcome of Sunday’s referendum on the future of Crimea. Gold is once again performing its historical function as a hedge and insurance policy against geopolitical risks and the vulnerability of other asset classes including equities and bonds.  Gold is also performing well vis-a-vis the dollar and most other currencies.   ...

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The Russian Bear – Bullish for Gold

So far, the gold market has largely ignored the East-West clash over Ukraine and control of Crimea. With gold recently trading mostly within the $1,340–to-$1,350 range, we’d guess the Ukraine/Crimea crisis has added no more than $10 or $15 an ounce to the yellow metal’s price.  But there is the potential for larger, more dramatic price movement in the weeks ahead. For the next few days, world financial markets will be anticipating the March 16th referendum in which Crimea will likely vote to secede from Ukraine and join the Russian Federation.  While this may already be reflected in the ...

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Easy Money – The Elixir of Gold

So far, 2014 has been a year of recovery for gold.  Trading recently near $1,320 an ounce, the metal is already up some 10 percent from its 2013 year-end price of $1,201.50 in the London bullion market. Gold’s improvement was apparently quite a surprise to many of the most prominent analysts and investors who, forecasting the price through a rear-view mirror, expected prices to head further south.  With gold possibly on a sustainable upswing, they are now busy jacking up their gold-price targets. Although gold has recovered smartly in recent weeks, an uninterrupted upswing to ...

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