Many of you have noticed that the price of gold bullion has fallen again, now reaching about $ 1,600 an ounce, from a high of over $ 1,900 per ounce of gold. The fall accelerated last week in response to the concern of the debt in the euro area. You might think that the crisis in the euro area would be good for gold, since the devaluation of a currency should increase the demand for gold as a store of value and can not be “defiled” by governments and central banks.
However, it seems that when markets fall, investors need more liquidity, which leads them to sell their gold reserves, which are very liquid and thus easier to sell.
Continue reading It could be a good time to invest in gold