Commodity prices including those of precious metals tend to go through super-cycles. Booms and busts occur as a result of these cycles. These cycles last for many years. In the latest super-cycle gold prices have climbed consistently in the last decade up until 2011 when prices reached a peak of just over $1,900.00. Since then …
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The Federal Reserve announced the launch of the third Quantitative Easing (QE) program (or the QE3 program) in September this year. This program involves the Fed buying bonds of agency mortgage backed-securities from the market for $40.0 billion per month. Earlier programs were called as QE1 and QE2. The current QE3 program differs from earlier …
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Gold prices closed at $1,775.80 yesterday in New York. As a safe haven asset class investors have sought shelter in gold during turbulence in equity markets for years and more recently gold prices shot up after the financial crisis. Over the long-term gold has rewarded investors extremely well. With the introduction of fiat money gold …
Gold is considered as a “safe haven” asset. This implies that the yellow metal’s performance should be inversely related to risky assets such as stocks and commodities. However the expected divergence is decreasing in recent years and gold’s correlation with stocks and commodities is reaching historic highs, according to a research report by Germany-based Commerzbank(CRZBY). …
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