Video – Gold Fundamentals

Gold has had a volatile couple of weeks, with large losses and some minor gains.

This video from Bloomberg helps discuss the fundamentals behind Gold, and looks at various issues that are affecting the Gold price currently.

http://youtu.be/W_nN_iLf3m4

Some of the major issues at the moment that are causing Gold to drop are:

  • QE programs to end?
  • Cyprian sell-off of gold could lead to contagion effect, increasing supply of gold in the markets.
  • Inflation is low and not threatening, but large Money Supply from QE and CBs could lead to higher inflation in the future as economic prospects get better.
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