HowMuchIsGoldWorth.net

OK….So in retrospect, things didn’t turn out the way we or any other gold bug wanted them to. After patiently waiting out the ‘Summer Doldrums of 2012′, gold started to rally in mid-August, approached the $1800 resistance barrier around end of September and once again failed to surmount it.

Even the ‘Golden Cross’ technical indiciation of mid-September 2012, in which the 50 Day Moving Average crossed over and above the 100 Day Moving Average, which was interpreted as potentially providing the momentum required to reach $2000 this time, has in fact turned back southwards and is ominously close to switching paths again.

That southwards movement has been squeezing the gold price in a narrow band for the last 3 months and last week, the donkey’s back broke sending gold hurtling downwards from $1670 to under $1600 in the course of 1 week.

That dramatic move took the gold price below its 100 Weekly Moving Average price for the first time in years if not since the beginning of this secular gold bull market and it is now quite possible that gold will test support at $1550.

If all this has got you rattled, then consider this. The 7-year chart for gold shown below reveals that gold can drop back down as far as its lower supporting trendline and crucial strong support at and above $1500, without it even putting a dent in its long-term bullmarket.

Anyone investing in gold needs to be looking at the long-term and when making long-term investment decision one should put more weight on long-term charts rather than focusing on short-term noise.

Przemyslaw Radomski of Sunshine Profits recently commented in an analysis that:

…the situation for the yellow metal remains bullish at this time. The analysis of this week’s long-term chart uncovered some bullish signals based on a study of trading patterns seen since 2006. As always, implications gleaned from long-term charts carry more weight than those from shorter time periods and are the most important factors to be considered from this week’s gold section. The bullish situation remains in place and RSI levels suggest an oversold situation similar to the major bottoms of 2011 and 2012. Although the short-term picture looks grim, the long term one is really encouraging, even though an additional short-term decline may be seen before the big rally.

It’s the show that has got Discovery Channel viewers hooked and whereas its reality-TV stars have not yet made their fortunes, the network certainly has.

“Gold Rush” follows the trials, tribulations and triumphs of Father and son team Jack and Todd Hoffman and their crew as they mine for gold up in the Yukon, Alaska.

Its the stuff of reality TV as viewers get a taster of what it must have been like during the original Klondike gold rush as we follow the band of Oregon men struggle with equipment, mistakes and various mishaps as they follow their dream of finding gold.

Now into its third Season, Hoffman has set himself the lofty goal of digging up no less than 1000 ounces of gold. Given that they fell short of their 100 ounce goal in Season 2, they either know something we don’t or the enduring allure of the yellow metal has gotten to their heads!

So How Much is 1000oz of Gold Worth?

1000 ounces may sound like a lot but in fact it is just 2 and a half 400oz bars, the kind of bars you see high-tech heist theives struggling to pick up in the movies.

So it may not be much to look at but once again people are amazed when they find out how much 1000 ounces of gold is worth.

Well at $1600 an ounce its worth $1,600,000, at $2000 an ounce its worth $2 million dollars and at $2400 an ounce, which is where many gold bugs see gold going in the next year or so, 1000 ounces is worth a mighty $2,400,000.

Well, good luck to them then.

More About the Klondike Gold Rush

The Klondike Gold Rush was a frenzy of gold rush immigration to and gold prospecting in the Klondike near Dawson City in the Yukon Territory, Canada, after gold was discovered in the late 19th century.

Between 1897 and 1900, more than 100,000 people from many nations attempted to reach the Klondike, but no more than 40,000 reached Dawson City.

Some quit on the trail after experiencing too much hardship. Some returned to their original homes. Still others returned to Seattle and made it their permanent home.

The town whose population was a mere 42,837 in 1890, experienced a commercial and population boom as numbers reached 237,194 by 1910.

For those that did make it, the gold-bearing gravel found between the Yukon and Klondike Rivers brought as much as $22 million in 1900