Gold prices at the end of last year jumped on the last day finishing 6 percent higher in 2012. Gold has enjoyed a consecutive increase for the past 12 years. The announcement that President Barack Obama and Congressional leaders had reached a budget deal to largely avoid the long feared “fiscal cliff.” helped bounce gold back up. Getting into a gold affiliate program is a good idea, it seems, as the economic recovery stalled again, the debt crisis in Europe was at its peak, and rollover global stock markets fell. Since then the trend has reversed itself and gold is selling again.
Starting in 2000 the price of gold has been gaining at 6x the rate, making it one of the best investments of the time. The rise at the end of last year was also due to lack of strong monetary policies from the Federal Reserve. Even though gold prices decreased in the days near the end of 2012, as some investors sought to get ahead of possible tax-rate increases for the next year, it was a good bet as it rose up again by the end of the week.
A the global economy improves the demand for gold may vary as some investors become convert the gold into other assists with expectations of higher returns.
Physical gold bars and coins are moving out of the United States and into Asia as investors in emerging economies, like China, search for new stores of wealth. Gold exchange-traded funds, in particular, are gaining popularity with investors looking to replace gold coins as their means of gold investing. Commerce Department data showed U.S. exports of
nonmonetary gold, which excludes central bank transactions, increased to $4 billion in December 2012. That’s a rise of 43 percent from November of the same year. Hong Kong accounted for almost half of the increase.
There was much excitement with gold investors when gold prices reached a record high of $1,900 an ounce in 2011. That record spawned predictions that gold would spike to $2500 an ounce by the end of that year and possibly reach $3,500 or more in 2012. For good reason, it seemed, as the economic recovery stalled yet again, the euro-zone debt crisis was at its zenith, and global stock markets had fallen. However, that trend has reversed since then, and gold has begun selling. What many speculators don’t know is that gold coins and bars are purchased at retail prices, but sold at wholesale prices, often at around a 20% discount. Ouch!