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| Eric Marvin, CFP®, CRPC®, Financial Planner |
Since August the price of gold has come down from $1,900 dollars an ounce to around $1,600 dollars an ounce. From the reaction of the media you would think this sell off of only $300 dollars or roughly 15% was monumental.
To get a better idea of why we have seen the recent correction in prices it may help to look at several factors. First, gold started the year at around $1,350 an ounce, so even at today’s prices it is still up over 18.5% for the year. Second, metals prices including gold usually experience seasonality selling going into the end of the year. In fact, we saw this same thing happen last year when gold lost about $100 dollars an ounce worth of value in December alone.
Third, global markets around the world have been trying to figure out whether or not we are about to experience inflation or deflation. The price action so far, appears to be leaning towards a deflationary environment versus an inflationary one.
Third, global markets around the world have been trying to figure out whether or not we are about to experience inflation or deflation. The price action so far, appears to be leaning towards a deflationary environment versus an inflationary one.
Please remember past performance is no guarantee of future results and to always consult with your financial professional for more help.
Eric M. Marvin
JPT121911-2072
