Jeremy Holcombe

Jeremy is a seasoned finance writer who has been studying the gold and silver industry for many years. His vast knowledge in the precious metals sector led him to Goldco Direct, where he is now one of their most recognized writers both on the site and around the web. Along with being a senior Precious Metals writer for Goldco Direct, he is frequently featured on many financial sites on the internet where they tap into his knowledge about gold. Jeremy is passionate about educating investors about the yellow metal as its price continues to rise to record breaking levels.

Gold on Track for Quarterly Drop

Thursday, 28 March 2013
Published in Gold Investing
Gold has been struggling to make any type of gains over the past several weeks. While the yellow metal has been up and down over the last few weeks, it has also hovered around the same $1,575 - $1,610 per ounce price mark. It seems as though the yellow metal just can’t break through right now and is somewhat stuck in the same place. Read more...
Gold remained steady today heading into the third weekend of January as little news hit the wire that caused any kind of stir. The yellow metal was down, but just over a dollar, as investors and traders chose to keep things quiet today and see what develops next week as we start to head into the second month of 2013. Read more...
The price of gold shot up some today, as reports from U.S. economic indicators reported steady improvement in the housing and labor markets. The yellow metal had dropped a small 40 cents yesterday, but the price of gold shot back up a little over $4 today. Read more...

Gold Regains Price Lead Over Platinum

Wednesday, 16 January 2013
Published in Gold Investing

Only one day removed from topping gold in the price category, platinum was back down below the price of gold, as the yellow metal experienced yet another jump in price while platinum gave back some of its previous gains on rising supply concerns from major producer South Africa.

Platinum had initially gone up in price for the sixth straight day yesterday after the world's number one producer of the metal, Anglo American Platinum, announced that an operational overhaul would cost 14,000 jobs and an estimated 400,000 ounces of production. After hitting that high yesterday, platinum was back down below gold today, as the yellow metal held its ground nicely.

Spot gold was little changed at $1,676.04 an ounce at earlier today against $1,678.50 late on Tuesday, while spot platinum was down 0.4 percent at $1,671.50 an ounce. The two metals hit parity for the first time since March on Tuesday. While gold did not experience a big spike upwards in price, the yellow metal is still going strong, and has now gone up in price for four straight sessions.

"The trend in gold and platinum has been aggressively upwards in recent sessions," Standard Chartered analyst Dan Smith said. "We (saw) a little bit of dollar strength today and platinum is running through a strong technical resistance and also some profit-taking.

"It's just a consolidation of recent gains but any pullback in platinum should however be seen as a buying opportunity for consumers at the moment."

Platinum was however still firmly underpinned by news that Amplats staff had downed tools on Wednesday, with the company saying workers were on illegal strike at three of its South African mines. This caused platinum to lose some if its price gain from previous sessions that had taken it so high it had even passed gold.

Speculation that Amplats' overhaul may cost fewer platinum ounces than originally suggested prompted some investors to cash in gains. This also played a part in the price drop of platinum.

"Our equity analysts view the net impact on the platinum market balance to be smaller, at about 250,000 ounces, which fits quite well with what the market was expecting," UBS analyst Joni Teves said in a note.

"It is not a huge surprise that the $1,700 psychological mark offered decent resistance, given platinum has not really been able to sustain prices above this level since the September 2011 selloff," she added.

Gold prices surged up for the second straight session, while platinum was also strong, actually surpassing the yellow metal in price for the first time since March of 2012. Gold may continue to experience price spikes this week as we take in the news that the monetary stimulus programs will remain in place for the time being.

Gold for February delivery was up again, this time by $12.20 to come in at $1,681.60 an ounce at the Comex division of the New York Mercantile Exchange. Gold price traded as high as $1,684.70 and as low as $1,666.20 an ounce, while the spot price of the yellow metal added $14.60.

Platinum was also on fire, and as mentioned above, surpassed gold in price for the first time in almost a year. Platinum prices for March delivery surged by $27.80 to come in at $1,685.40 an ounce. It was a strong day for platinum indeed.

Despite the fact that we heard news of the monetary policy more than likely staying in place for now, gold traders also began speculating this week on the possibility of Congress failing to raise the debt ceiling, as such an event would likely drive up the price of the precious metal as investors would flock to the asset as a hedge against uncertainty.

Traders may recall that Congress' debt-ceiling battle in 2011 led to historic highs for gold as bitter division rocked stock markets and resulted in the eventual downgrade of the United States' credit rating.

All of the above was brought home by Federal Reserve Chairman Ben Bernanke speaking Monday at the Gerald R. Ford School of Public Policy at the University of Michigan and reiterated that the U.S. economy still was not yet out of the woods. Bernanke's comments essentially were in line with a speech given by Chicago Fed President Charles Evans, who spoke Monday and reaffirmed that the U.S. would need more quantitative easing in the near term.

While this was great news for investors and traders, quantitative easing will have to stop at some point. Hopefully the economy will be strong enough to withstand the change and be able to move forward normally.

Look for gold to remain strong through this entire week, while platinum may continue to beat gold in price for a while too. Both metals had an excellent day and they should both be on your short list of possible precious metal investments for the near future and beyond.

Gold jumped back up today after Charles Evans, the Chicago Fed President, made a pretty surprising and crucial statement. Chicago Fed President Charles Evans said that further monetary easing would be necessary for now. Last week we had heard that measures may be taken to reduce the monetary easing and stimulus programs in America, but it looks like they may stay in tact for now.

"He [Evans] came out and reaffirmed that quantitative easing is in place right now, they don't see any reason why they would stop the quantitative easing at the moment," said Phil Streible, senior commodities broker at RJO Futures. "Remember, we need to get growth continuously above 2%, we also need to get the unemployment rate down near 6% in order for them to pull off the throttle of QE."

This apparently was welcomed news by most investors, as it helped gold jump by double digits today to start out the week. How long these monetary measures will stay in place wasn’t announced, but at least it helped ease the mind of most investors at a time when the fiscal cliff fighting is about to begin again.

Gold for February delivery jumped up by $11.80 to come in at $1,672.40 an ounce at the Comex division of the New York Mercantile Exchange. Gold price traded as high as $1,674.80 and as low as $1,659.50 an ounce, while the spot price of the yellow metal increased by $4.50. Overall it was a very nice trading period for the yellow metal to start the week.

Evans remarks came Monday at a forum in Hong Kong, where he said that monetary stimulus would continue until the economy created 1 million to 1.5 million jobs during a six-month to 12-month span. The Wall Street Journal was the first to report this news.

Fed Chairman Ben Bernanke is still scheduled to speak today at the Gerald Ford School of Public Policy at the University of Michigan after equity markets close. While the above statement have not yet been made by Bernanke himself, it is thought that these sentiments will be shared by him as well, as he will announce monetary policy to stay in place for now.

Gold may enjoy somewhat of a rebound throughout this week, especially if Bernanke gives a little more information on what we can expect for the future as far as monetary easing timelines.


Gold Falls Again Heading Into Weekend

Friday, 11 January 2013
Published in Gold Investing
Gold fell for the second time in three days as several different concerns continue to hit investors. Topping the list today was the fact that inflation in China topped economist estimates, increasing concern that officials may curb stimulus. This, along with the continued fiscal cliff fighting that will go through February and into March, are just too much for gold to work against right now.

Gold futures for February delivery dropped again, this time by 1.2 percent to come in at $1,657.90 an ounce earlier today on the Comex in New York. A close at that price would be the biggest loss since Jan. 4. Yesterday, the price touched $1,678.80, which was the highest it had been in a week. As you can see, gold is very volatile right now, even more so than usual.

According to the National Bureau of Statistics, China’s inflation accelerated to a seven-month high in December. Bullion climbed 7 percent last year, which was a 12th straight gain, as central banks in Europe, the U.S. and China increased stimulus measures to boost economies. The Asian country is the world’s biggest bullion buyer after India. They took over the number one spot after using the last year and a half to buy up as much gold as possible with their almost unlimited cash supply.

“The market is reacting to China’s inflation numbers,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said in a telephone interview from Chicago. “Less liquidity in the system means a slowdown in purchases.”

So what are we to make of all the huge price dips and spikes that gold is experiencing right now? Well, the fact of the matter is that gold is still actually holding up very well, especially when you consider all that is going on right now. The China inflation issue is a new one, and that news only hit today. Together with the fiscal cliff issues, the Euro zone issues, the Fed announcement of stimulus cuts, and other outside factors, one can look at the price of gold and see that it is still doing very well.

Still though, the yellow metal is expected to blow up in 2013 and make a run at or near the $2,000 per ounce price mark. You can still purchase gold right now for a great price (comparatively speaking), and if you are able to hold on to it you are going to see some nice price gains over the next 12 months.

Gold Spikes Up After Draghi Comment

Thursday, 10 January 2013
Published in European Economy
Gold, as it has been doing all through the first month of 2013, made yet another huge move, this time in the positive direction. Gold was up by almost $15 today as European Central Bank President Mario Draghi's announced that economic conditions would improve in the Euro zone later in 2013.

While gold spiking up b y almost $15 is always nice, the bigger deal here may be the fact that an announcement like this coming from the Euro zone is definitely a move in the right direction. We (Americans and others) have been dealing with these Euro zone issues for almost two years now. That area (mostly Greece) has been a hotbed of bankruptcy rumors and they have continued to drag their feet over any type of debt deal.

However, we have been hearing news that they have finally got a debt deal in place and that they are in the final stages of putting it all in place. This announcement from Draghi only helps matters, as investors have been waiting for something like this for a long time.

Gold for February delivery was up by a healthy $14.50 to come in at $1,670 an ounce at the Comex division of the New York Mercantile Exchange. Gold price traded as high as $1,672.60 and as low as $1,653.80 an ounce over the early trading period, while the spot price of the yellow metal jumped $18.80.

Gold needs to have more news like this come its way, especially if it is going to make a run at that long awaited $2,000 per ounce price mark and beyond.

It was nice to hear Draghi say some of the things he did, as it helps investors see what the future may hold for gold and other precious metals.

"Later in 2013 economic activity should gradually recover. In particular, our accommodative monetary policy stance, together with significantly improved financial market confidence and reduced fragmentation, should work its way through to the economy, and global demand should strengthen," Draghi said at a press conference.

"Gold was used as an investment that's supposed to not really correlate with the stock market -- that's why a lot of investors bought it, because they were afraid of the stock market," said Yoni Jacobs, chief investment strategist at Chart Prophet. "Over the last year or so you're seeing gold increasingly correlated with the market, so instead of becoming a riskless asset, it's actually become a risky asset."

The fact of the matter is that after these comments by Draghi from the ECB, gold may have quite a nice path ahead of it.

Gold Ends Down on Stronger Dollar

Wednesday, 09 January 2013
Published in Gold Investing
Gold ended down today amidst the surprise of a stronger dollar. One day removed from gaining a bit in price the yellow metal was back down by just over $6 per ounce as the dollar bill decided to flex its muscles some.

Gold for February delivery GCG3 +0.11%  settled down by $6.70, or 0.4%, to come in at $1,655.50 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal had jumped $15.90 an ounce, or 1%, to settle at $1,662.20 on Tuesday, amid signs of increased demand in Asia. This, however, did not last long.

Overall, “as far as gold is concerned, the buy-side pressure is from investors who believe the rhetoric in the media concerning the prospect of [quantitative easing by the U.S. Federal Reserve] ] ending early is not credible,” said James West, portfolio adviser to the Midas Letter Opportunity Fund. So the buying continues for those investors “in defense of further U.S. dollar debasement as a result of quantitative easing.”

But “opposing that are those who do believe that quantitative easing will come to an end as the economy improves,” he said. That would likely provide a boost to the greenback, which tends to weigh on prices for dollar-denominated commodities such as gold.

Despite the fact that gold has been wavering some in price early on in 2013, the consensus still remains that gold will make that long awaited magical run at the $2,000 per ounce price mark, or at least come very close to it. Despite the fact that the dollar is stronger today, it is hard to imagine that the dollar will continue this strong, as the fiscal cliff negotiations will continue to be hard fought and affect the dollar.

“It’s hard to imagine why the dollar continues to post gains,” said David Beahm, vice president at precious-metals investment firm Blanchard & Co. “Anyone who has looked at the velocity of money in the United States will see that it is only a matter of time before inflation increases and the dollar falls.”

So “we are advising our clients to buy gold now, before investors realize how low the velocity really is,” he said. “Gold has the potential to break through $2,000 this year on that simple fact alone.”

Look for gold to continue to waver some before finding footing and making a run at $2,000 per ounce.

Gold Regains Ground off of Asia Demand

Tuesday, 08 January 2013
Published in Gold Investing
Gold finally made up some lost ground today off of demand in Asia. The yellow metal jumped back over the $1,650 mark as extra demand coming out of Asia helped contribute to gold gaining price for the first time in three sessions. The fact that big banks are also revising their gold forecasts for 2013 and 2014 also played a part in helping the yellow metal.

Joining other institutions that have cut their outlooks on gold prices, Deutsche Bank revised lower its 2013 and 2014 forecasts, effectively capping gains in the precious metal. This better prepped gold forecast may help the yellow metal gain more momentum faster, as these types of outlooks can get touchy sometimes.

Gold for February delivery GCG3 +0.65% jumped back up by $9.90 an ounce, or 0.6%, to come in at $1,656.20 today on the Comex division of the New York Mercantile Exchange. Prices had fallen 2.5% over the three previous trading sessions due to conflict involving the fiscal cliff and other outside news.

As usual, leave it to the Asian markets to help gold pick back up some, especially when the yellow metal is struggling with any gain in the United States market. China’s lunar new year is on the way as well, which may have been a huge reason for the spike in demand.

With the Chinese New Year ahead, “an increase in this seasonal demand is good for gold and offsetting fundamental weakness elsewhere,” said Jeff Wright, managing director at Global Hunter Securities. “Otherwise, the ongoing gold correction would be more pronounced.”

Using this news as a backdrop for its announcement, Deutsche Bank reduced its average gold forecast for this year by 12.1%, to $1,856 an ounce, as well as by 5% to $1,900 an ounce for 2014. While these reductions put the yellow metal below the $2,000 per ounce price mark, the fact of the matter is that they are still just predictions, and high ones at that. Investors would still love to see the yellow metal jump to the $1,900 per ounce price mark.

The next few weeks could bring updated gold price forecasts from other big banks around the world as well. While these gold forecasts may not be huge, they could set the tone for gold in 2013 if they are more accurate. Some state gold at $2,500 by the end of 2013, and that isn’t going to happen.
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