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March 6, 2015

2015 gold price forecast

by oakley711

2015 gold price forecast

Yesterday, the gold spot price closed under $1,200, today as I write, the N.Y. gold spot price is down $33 to $1,165 an ounce!

Will the down trend in the price of gold keep falling or is the gold spot price near a major bottom? These are question you will have to decide for yourself.


After a decade long powerful gold rally we’ve witnessed an unrelenting decline in the spot price of gold from its high of $1,826 per ounce. Many experts (including Goldman Sachs) feel that the gold spot price will drop further.

2015 gold price forecast

spot gold prices

 Gold as an investment – From Wikipedia, the free encyclopedia:

The performance of gold bullion is often compared to stocks due to their fundamental differences. Gold is regarded by some as a store of value (without growth) whereas stocks are regarded as a return on value (i.e., growth from anticipated real price increase plus dividends). Stocks and bonds perform best in a stable political climate with strong property rights and little turmoil. The attached graph shows the value of Dow Jones Industrial Average divided by the price of an ounce of gold. Since 1800, stocks have consistently gained value in comparison to gold in part because of the stability of the American political system. This appreciation has been cyclical with long periods of stock outperformance followed by long periods of gold outperformance. The Dow Industrials bottomed out a ratio of 1:1 with gold during 1980 (the end of the 1970s bear market) and proceeded to post gains throughout the 1980s and 1990s. The gold price peak of 1980 also coincided with the Soviet Union’s invasion of Afghanistan and the threat of the global expansion of communism. The ratio peaked on January 14, 2000 a value of 41.3 and has fallen sharply since.

In his book Basic Economics, Thomas Sowell argued that, in the long-term, gold’s high volatility when compared to stocks and bonds, means that gold does not hold its value compared to stocks and bonds:

To take an extreme example [of price volatility], while a dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars in real terms. Meanwhile, a dollar invested in gold in 1801 would by 1998 be worth just 78 cents.

California gold nuggets

California gold nugget

California gold nugget

To view our large selection of real California and Arizona gold nuggets visit our site at:

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2015 gold price forecast

 

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