Gold Rally Could Soon Lose Its Shine

Although the stock market has essentially shrugged off geopolitical risk involving Syria, Russian, China, and the U.S., the gold market has been paying close attention. Further, the gold bulls have been aggressive buyers on dips, pushing prices roughly $150 per ounce off the December lows.

This marks a 13% rally in a handful of months and, in our view, could be suggesting most of the buying has already taken place. Let us not forget, gold is the only commodity that offers no real value to its holders. It is not regularly used in manufacturing or industry; instead, its value is based on mere perception. Whether we perceive it as being valuable as jewelry, decoration, or some sort of holder of wealth during a catastrophe, it is not a useful commodity nor is it a liquid form of barter. People buy it out of their belief in value, not its true worth. Nevertheless, there are always trading opportunities in gold, so we all pay attention....313 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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