Topic: How To Invest

What is Pat’s commentary for the week of October 1, 2013?

Article Excerpt

The price of gold hit a peak a little more than two years ago, in August 2011, at around $1,900 an ounce. It has generally been falling ever since. It fell below $1,200 in July, and is now around $1,300. If you had that kind of movement in a broad stock market average, you might say that now is a good time to consider if that market has come down into buying territory. You might wonder if prices were ready to reverse course and resume a long-term rise. However, if you try to make that kind of assumption with gold, you have a lot less information to work with. After all, stocks have a relationship with various measures of value such as earnings, dividends, sales and so on. The history of these relationships ranges widely, but they still give you a basis for comparison. Not so for gold. It doesn’t produce any sales, revenue or earnings. In fact, it consumes…

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