Digging deeper into gold

Digerati Life has some great charts for gold, real estate and stock market movements. Credit for the gold chart goes to kitco.com.

As gold continues its amazing price climb, it’s time to get a little deeper into the subject. IFO has already lightheartedly dealt with the decline of the US Dollar with her Swiss Watch Index.

But kitco.com has a more sophisticated look at this and some pretty shocking facts about why the price of gold has skyrocketed lately.  Look at this other chart, which shows the relationship between the value of the USD and demand, which they call “predominant buyers.”

Gold price Change due to Weakening of USD       +4.90

Gold price Change due to Predominant Buyers  +21.10

Gold Price: Total Change                                        +26.00

This is just a snapshot of today’s trading, but it will give you an idea of how it works.

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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