Is Anyone Still Interested in Gold?
The recent price action of gold has been frustrating for some people. The precious metal logged its second consecutive quarterly loss and remains in consolidation mode amid the greatest financial crisis since the Great Depression. However, there are still plenty of buyers around the world that are interested in gold.
Gold finished 2012 with a solid 7 percent gain, capping its longest steak of annual gains since at least 1920. Despite the performance, gold entered the new year on weakness. The fourth quarter was gold’s weakest quarter in four years and the decline has yet to stop. In the first three months of 2013, gold dipped nearly 5 percent. It was the first time in over a decade that the precious metal posted back-to-back quarterly declines.
The miners have been even more depressed. The Market Vectors Jr. Gold Miners ETF dropped 15.4 percent in the first quarter, while the larger Gold Miners ETF plunged more than 18 percent. In comparison, the Dow Jones Industrial Average and S&P 500 gained 11.3 percent and 10.0 percent, respectively.
Like Warren Buffett says, buy when others are fearful…
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