The monetization of gold through legal tender laws and removal of taxes will restrain the government from reneging on the gold standard by putting gold on an equal footing with the dollar.
FORBES: The Legislative Beginnings Of A Modern Gold Standard
Importantly, while some near-term technical damage has occurred on the daily chart for gold (see technical analysis paragraph on gold below), the longer-term technical posture for gold remains bullish, as the longer-term price uptrend on the monthly gold chart remains firmly in place.
FORBES: Comex Gold Ends Firmer, Near Daily High, Which Gives Bulls Some Encouragement
An unexpected substantial increase in the import tax on gold and the introduction of an excise duty on gold jewelry resulted in a three-week countrywide strike among jewelers until the government agreed to end the excise duty.
In the fall of 2009, however, public sentiment on gold was overwhelmingly positive, right before gold topped out on December 1.
On Monday the gold market benefited from the aforementioned situation, but on Tuesday gold traders are focusing a bit more on the stronger dollar and weaker crude oil prices.
FORBES: Comex Gold Moves Lower Amid Stronger U.S. Dollar, Lower Crude Oil
On Monday the gold market benefited from the aforementioned situation, but on Tuesday gold sold off as traders were focusing more on the stronger dollar and weaker crude oil prices.
FORBES: Comex Gold Ends Sharply Lower amid Firmer U.S. Dollar Index, Weaker Crude Oil
The former method puts a burden on the investor to store physical gold, while the latter is a play on gold rather than direct access to the commodity.
Groenewegen, along with Rachel Benepe of First Eagle Investment management and Juan Carlos Artigas of the gold council, all sharing a panel on gold at the aforementioned conference, made a case for gold as a hedge, not only of inflation, but of risk.
He has also bet big on gold and gold mining stocks, a move that has made the start of 2013 another difficult stretch for him.
Recently, he shifted some of the organization's gold bullion into an equivalent bet on gold using futures, a move that freed up cash that was plowed into stocks.
The prevailing view is that a win for Democrat Barack Obama would mean higher gold prices on the idea of the status quo continuing, and win for Republican Mitt Romney would mean lower gold prices on thoughts that he might replace Federal Reserve Chairman Ben Bernanke.
FORBES: METALS OUTLOOK: Weak Close For Gold Could Spill Over Into Early Trade Next Week
The London-based World Gold Council released its third quarter report on gold demand Wednesday, and it reveals that the yellow metal is not at historical peaks on investor speculative demand alone.
After the whirlwind, Mr. Mimani said he is taking a more bullish view on gold, especially gold mining stocks, because their dividend payouts now offer a yield of about 4%.
Chart Analysis : Whether investing or trading one of the gold ETFs or buying physical gold, it is important to keep an eye on the gold futures.
After all, since the likes of Ashanti are, quite literally, sitting on a gold mine, surely they could simply deliver gold or borrow money on the back of their reserves?
The sheer swiftness of gold's decline on Monday meant that investors were willing to pay a premium for put options on gold and silver-backed exchange-traded funds, a centerpiece of his strategy.
If a gold mutual fund were placing its bets based on where gold itself might be headed, it might focus on a limited number of factors.
FORBES: USAGX's Denbow Looks For Gold Stocks 'That Will Survive In Most Markets'
Importantly, while some near-term technical damage has occurred on the daily chart for gold, the longer-term technical posture for gold remains bullish, as the longer-term price uptrend on the monthly gold chart remains firmly in place.
When central banks start stocking up on more gold, the gold bulls reckon their own positive stance on the metal remains on very solid footing.
FORBES: Comex Gold Up, Hits New Record High, on Fresh Safe-Haven Demand
Those who are neutral on gold said they expect gold to consolidate at current levels after the sizable run up in prices this week.
FORBES: Gold Prices Seen Rising Next Week, Survey Participants Say
Shares in Barrick Gold fell hard on Thursday after the company posted earnings that revealed a top and bottom-line miss, lower guidance on gold production and higher cash cost forecasts.
FORBES: Barrick Gold's Horrible Third Quarter: Big Miss, Lower Guidance, And Higher Production Costs
Gold mine shares are a traditionally leveraged manner of betting on gold prices.
Non-commercials in the legacy report decreased their net-long gold position only slightly, but cut exposure to gold on both sides.
FORBES: FOCUS: Mixed Speculative Activity Seen In CFTC Data Following Metals Price Break
Gold had seen strong selling pressure on Tuesday and Wednesday, and then Wednesday afternoon the CME Group raised futures margins on gold by 27%, to prompt still more long liquidation in gold.
No one seems to care at the Fed about the gold supposedly backing up the gold certificates on the Fed balance sheet.
FORBES: Robert Wenzel to Federal Reserve: "Leave the Building to the Four-Legged Rats"
Those who are bearish on gold prices said the dragging on of talks over the fiscal cliff, falling open interest in the Comex gold futures and profit-taking into the end of the year will continue to keep gold under pressure.
FORBES: No Clear Majority Of Opinion Seen On Gold Prices In Weekly Survey
BarCap created its first CD linked to gold last September, with a five-year yield based on gold's quarterly price performance.
Oxman said dollar-strength might have some capping effect on gold, the fact that gold is keeping its safe-haven currency status limits much downside.
FORBES: METALS OUTLOOK: Sovereign Debt Worries To Lift Gold Again Next Week
After all, hedge-fund investor John Paulson, now legendary for shorting the subprime-mortgage market and for betting on gold, remains a big gold bull.
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