In my mind, there are at least two fundamental shakers in the market, the price of gold and the price of oil. Our currency worth hinges on how much we have stockpile gold in our reserves. Oil on the other hand, being a fundamental commodity, it dictates inflation rates. I closely watch how these two performs on the trading floor daily. Two updates a few hours ago that is worth your while:
The latest from the FinancialTimes.com:
The price of gold continues to trade at fresh highs, so the fact that a quarter of global fund managers say it is overvalued should come as no surprise... “The continuing spike in the gold price leaves investors increasingly uneasy,” says BoA Merrill Lynch. But that has not stopped people piling in. At the time of writing, the spot price of gold had finally broken the $1,200 per ounce mark, almost 40 per cent higher than it was 12 months ago.
From AP:
CAIRO — Saudi Arabia’s oil minister says the current global oil price is “perfect” and the market is stable… Naimi told reporters “the price is perfect” and that the global crude market is stable. Benchmark crude futures settled on Friday at around $75 per barrel.
Perhaps the average Joe will not appreciate any of this news. For most of us however, we know that the high and lows of these two commodities can greatly affect how we do business and go about our daily grind. Okay, there is nothing here to hint that you start investing on oil or gold coins (which is rather more practical and you might want to check out GoldCoinsGain.com and find some interesting gold coin collection there)-far from it. What I meant is, it much better to watch how the prices of these items behave because it greatly affect us in more ways than we think.