Holding gold as an investment has always involved being knowledgeable about the market, but today investors need to know more than ever before. Those choosing to invest in the precious metals market need to understand geopolitics and global geography. Columnist Louis Golino of Coin Week set forth some powerful points for gold investors to take note of, stating that being aware of the world around them is something that can make the difference between being a successful investor and one who gets less than spectacular results.
"But being knowledgeable about the precious metal markets is not simply a matter of understanding market fundamentals and related issues," Golino said. "It also increasingly means that investors need to study geopolitics and macro-economic issues too, even if the connection to metals is not always immediately apparent."
This questing beyond the basics is something that investors in stocks are advised to do on a regular basis. Wealthy stock investors such as Warren Buffet have long placed a premium on excellent research and understanding the bigger picture. This is where gold investors can take a cue and dive deeper themselves, uncovering more of the inter-relationships between their commodity of choice and the many aspects of the global economy that it is tied to.
Gold surged to its highest price in a week today, following the U.S. Federal Reserves announcement that it will continue to print money and not pursue a tapering right now of its massive $85 million bond buyback program, reported USA Today.
“Gold bugs were called back into action Thursday as the market digests the fact the Federal Reserve didn't scale back quantitative easing as widely expected,” wrote the paper’s Matt Krantz.
Gold futures for December trading rose by 4.6 percent to hit $1,367.70 on the Comex in New York. Bloomberg reported that this was the largest percentage jump since 2009.
Demand for physical gold, or gold for immediate delivery, continued to surge in London adding 0.3 percent to $1,368.01, after jumping 4.1 percent on Wednesday. Bloomberg that was it the biggest one-day jump for gold for immediate delivery since June 1, 2012, during the height of the gold bull market.