Is the price of gold going to bounce again because of Japans earthquake?
The latest natural disasters including the earthquake in Japan, are human tragedies of enormous proportions, and following the destruction of Christchurch in New Zealand as well as the earlier tsunami in the region, has left the whole pacific rim feeling frightened and insecure about the future.
Gold moved up a few dollars, but has not responded strongly to any great fear of the future so far. I can't help but think this is partly because of the bond market funds that have returned to Japan to support insurance claims as well as the Japanese people calling on their US funds held in bonds. Gold has risen considerably but not responded as much as many would have expected. It has climbed considerably from what looked to me like a lag in price that saw it hopping around a bit, even dropping back into the 1300's for a short time in the last few months. A longer view is still interesting as far as profit is concerned.
We have seen gold rising slowly but steadily as the world has been confronted with new wars, financial collapse in money markets, talk of nuclear annihilation and other doom and gloom that in the past would have had it skyrocketing by now, but it is a new and interesting time we live in, where lightning fast transactions control pricing, which has a leveling effect on gold prices, as some of the emotion is tempered by knowledge and volume.
Despite all the science, I'm backing the scared little guy again and reckon he is gonna push prices up and up! The scared little guy will tell you "Hell you can even use the stuff!" If we are going to Mars any time soon, we are gonna need lots of it for space projects, military projects and as a reliable contact in computer technology that is increasing in motor transport and other usage daily.
Gold is not a financial derivative, a company financial statement or abstract financial product than can be made with smoke and mirrors. Gold is real, you can melt it down and turn it into a pumpkin and paint it green, it will still carry exactly the same wealth it does in ingots.
I like to think the world is going to settle down soon and give mankind a break, but I can see that is taking a while, so in the meantime, at least keep some gold in your portfolio would be my advice, and if you really think your currency is likely to run in to trouble, a few bars of gold may be just the ticket to pay your way out of an otherwise difficult situation.