Gold’s recent failure to generate any lasting upward momentum has many gold bulls asking “If not now, when?” says Jeffery Nichols, a Senior Economic Advisor to the highly regarded precious metals investment firm, Rosland Capital.

Analysts were anticipating a increase in precious metal pricing, given the early-autumn economic news. The news indicated with the the Fed’s postponement of tapering, the fiscal impasse and partial government shut-down in Washington, with the approaching debt-ceiling and possibly perilous U.S. Treasury default in world financial markets.

This market imbalance is not sustainable, says Nichols. “If only because the buyers have very deep pockets and very strong hands. Hundreds of tons of bullion bars have traveled from depositories in New York, London, and other Western vaults to Hong Kong, Shanghai, and millions of Eastern households. When sentiment shifts and Westerners look more favorably on gold, Asian holders will not likely sell, except at extraordinary price levels.”

The September 2011 all-time high was over $1,920 an ounce. Most of a few hundred large-scale institutional investors who were late to buy gold, were just as quick to sell gold once it stalled and failed to increase value from quarter-to-quarter. Investors needed increases to look good to their shareholders.

A small number of institutional speculators, made up of mostly the trading desks of the big financial firms, drove gold lower and profited greatly by selling at price points that were sure to trigger still more selling and the opportunity to buy back at still-lower price levels. This was an equally important factor in gold’s impairment over the past couple of years.

Gold, among other precious metals, remain vulnerable in the current economy. More buyers are looking to invest over the long term. With a substantial increase in the price, being more likely over the next three-to-five years.

The Federal government shutdown will negatively impact consumer spending, unemployment, and economic activity. Looking at the remainder of the quarter, Nichols points out that uncertain developments on the U.S. fiscal and debt fronts could drive gold one way or the other in the weeks ahead. The Federal Reserve will not risk adoption of policies that might trigger a full-blown recession.

But tapering or not, monetary policy will, in any case, remain in a stimulative pro-gold mode for months, if not years, to come as the economy continues to struggle to regain its footings. And, in any event, as important as it is, there’s more to gold-price prospects than U.S. monetary policy.

On the horizon for gold investment is the demand of the Indian festival and wedding-related events. The replenishing by jewelry manufacturers worldwide in anticipation of Holiday shopping season, continuing strong demand from China, and a pick-up in central-bank acquisitions, should underpin the gold price and could contribute to a resumption of the long-term uptrend in the metal’s price.

Learn more about the latest news in the precious metals industry on the Rosland Capital website.

More About Rosland Capital

Rosland Capital LLC is a main precious metal asset business based inside Santa Monica, California that purchases, sells, and trades all the notable sorts of gold, silver, platinum, palladium and other precious metals. Recognized in just 2008, Rosland Capital strives toward educate the public on the positive aspects of investing inside gold bullion, numismatic gold coins, silver, platinum, palladium, and other valuable metals.

About Jeffrey Nichols

Jeffrey Nichols, Running Director of American Beneficial Metals Advisors and Senior Fiscal Guide in the direction of Rosland Capital, incorporates been a major valuable metals economist for above Twenty five a long time. His purchasers contain integrated central banks, mining services, national mints, investment decision dollars, investing corporations, jewellery makers and other individuals with an awareness within just valuable metals marketplaces.