Approximity: Gold as a financial instrument - charts, analyses, opinions

If you haven't read the FAQ yet, it is possibly a good idea to read now

What is gold's role today?
How is gold doing financially?
Is the financial importance of gold controversial?

before you read on below.


Is gold undervalued?
General analytical resources
Particular essays on the web
External charts
Approximity Gold Charts
Opinion & outlook on gold
Disclaimer


Is gold undervalued?

Undoubtedly, gold has gained a lot in value against all leading currencies since 2001. But will this upward trend continue? There is no easy answer. As with all financial instruments, there are many possible ways in which to approach the determination of a 'real' or 'fair' price of gold. Among other methods, people try to understand the gold price by means of Fundamental Analysis, the Efficient Market Hypothesis (EMH) , or Technical Analysis (charting). Where the EHM is not much useful as a buy/sell-indicator (as the price is believed to already reflect all available information), Fundamental and Technical analysis might be able to give such indications. However, also in these sub-fields there are many different approaches and opinions by market participants. Since Technical Analysis is a particularly widespread field (by some even referred to as 'esoterics') we only give some links to more fundamentally oriented analyses below.

General analytical resources

Weekly commentary by Paul van Eeden (rather bullish)
Galmarley (rather bullish)
BullionVault's research site (rather bullish)
Investing in gold, silver etc. - List of articles from MoneyWeek
TheBullionDesk, frequent gold news and live prices

Particular essays on the web

Understanding the Gold Price by Paul van Eeden (article bullish on gold)
Consumer spending, real estate and the economy by Paul van Eeden (article bullish on gold)
Why the price of gold is set to rise by Mark O'Byrne (article bullish on gold)
Commodities: a bull or a bubble? from MoneyWeek
The Right Price For Gold by David Kuo (article bearish on gold)
Gold: A Poor Long-Term Investment by David Kuo (article bearish on gold)
The Weakness Of Gold by David Kuo (article bearish on gold)

External charts

Real and nominal gold price (1968-2006) from Wikipedia
Au annual average USD price 1793-2005 from Wikipedia
Dow Jones/Gold Relative Ratio, Annual Data from 1896 from The Big Picture
Dow Jones/Gold Relative Ratio (logarithmic scale), Data from 1800 from Wikipedia
Average US house sale prices in oz gold from ShareLynx Gold (scroll down to the 2nd chart)

Approximity Gold Charts

UK, London, Scotland: Real House Prices (Q3 1973 - Q4 2007)
Real and Nominal Gold Prices in GBP (Q3 1973 - Q4 2007)
UK, London, Scotland: House Prices in Ounces of Gold (Q3 1973 - Q4 2007)

Opinion & outlook on gold


Disclaimer: These webpages reflect the personal views and opinions of some people working for Approximity. They are not intended to be investment advice or financial advice to any person or institution. While provided information is believed to be correct, correctness cannot be guaranteed. Furthermore, information might be subject to change without notice or become outdated. Approximity does not accept any responsibility for any (direct or indirect) investment decisions arising from the use of the information on these webpages. The responsibility for contents and information on external webpages lies completely with the respective authors. External links might be subject to changes or outdating without notice on Approximity's webpages.

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Last update: February 01, 2008 (Approximity)