An interesting article from Tanya Jefferies for thisismoney.co.uk on Friday was headed ‘Fresh blow for gold investors as price slumps to $1,087 as US Fed looks set to hike interest rates this side of Xmas’

All true… but;

Would the headline ‘Buying Opportunity for Gold Investors as Price Drops to $1,087’ be equally accurate?

The reasons behind the recent falls in Gold Prices are numerous and varied. Depending on your particular viewpoint, these reasons vary from the increasing rises in Global Stock Market prices and the ever imminent prospect of increases in US interest rates to unsupported suggestions of widespread manipulation of the market.

Whilst large scale, institutional investors controlling multi million pound investments in Gold may well be dismayed at the recent price falls, a much larger group of smaller scale investors is happily taking full advantage of the situation.

“it would make gold less attractive as an investment compared with
other assets that generate interest, such as government bonds.”

Tanya Jefferies

Individual investors tend to take a long term view on Gold ownership. Many have family links and roots in Asia where buying and holding Gold has been a traditional method of accumulating and storing wealth for generations. Such investors tend to look beyond the short term price fluctuations that our digital age markets seem obsessed with and focus on the proven, long term results that may take a generation to see.

Price is certainly an issue for individual investors but purchases tend to be made when the capital is available to make them. At this point the issue of market price may delay a purchase by a month or so but then the most influential pricing factor is often the premium charged by a particular dealer for the desired products.

The recent falls in Gold Price have certainly prompted many individual buyers to take advantage and buy but we are seeing more people shop around for the best deals available as they realise that simply ordering from the same dealer that they have used previously may be an expensive option now that increased choice exists in the retail market.

Whilst everything that Tanya Jefferies writes is true, there is another, very different reality for individual investors.

Same market – different perspective.