Gold on the move

The prices of precious metals are on the move again. Last Friday, the gold price suddenly fell sharply from more than 45 dollars per troy ounce. This after the 'relatively good' jobs figures in America were announced. This decline follows a period of rising prices.

Should we be worried when we see that the price of gold can fall so fast? Connoisseurs in investing gold and silver know better. It is not uncommon for such movements to be visible. A small recovery was also visible last Tuesday evening during the presidential elections. As quickly as the price went down, we also saw the price go up when the third Quantitative Easing in the United States was announced. The Fed announced that they would pump $40 billion a month into the economy. 

Recent years have shown that the debt burden and the actions of the United States in this regard are an important indicator. Since 2000, the gold price has been moving along with the debt burden of the United States. This is not inexplicable either. The Fed is increasingly buying up its own debt burden. This implicitly implies that more dollars are being printed and generally means that gold is becoming more valuable. We can add this to the current budget and, above all, the balance sheet/debt burden. If we combine this with the plans of the American president Barrack Obama, I think that the relaxed attitude of many investors in gold and silver, regarding the future of precious metals, is understandable. And we haven't even taken into account the situation in Europe. The fact that the European crisis is far from over was confirmed again today by Mario Draghi of the European Central Bank.