May 2nd 2012 – How Much is Gold Worth
I tell you, I’ve been watching gold prices for almost 5 years and I don’t remember the last time gold was being so boring. The bears are out and this time they’ve got some new ammunition. Check out the 50 and 200 Day Moving Average lines in the 3 year chart below. For the first time in that period, the 50 DMA (the blue line) has gone below the 200 DMA (the red line). Something to think about? Maybe.
In other news regarding central banks, after years of selling off their gold reserves (most famously Gordon Brown of the UK who as Chancellor of the Exchequer at the turn of the millenium sold off much of Britains gold reserves at what was then rock bottom price at a loss of billions of pounds to the UK), around the world they continue to purchase safe-haven metals.
New data released by the IMF reported that Mexico added 16.8 tons of gold worth about $900 million to its reserves in March whilst Russia and Turkey added about 16.5 tons and 11.5 tons, respectively. In total, the world’s central banks increased their holdings by a record 440 tons of gold last year, the most in almost 50 years.
I wonder how much the central banks think gold will be worth in a few years time?