Explaining 'Gold $1,000' to your readers
Rev up the gold-party circuit again.
Just when all of the remaining ‘80s-style snake chains from QVC were safely tucked away, desire for the precious metal has spiked again, pushing its price to nearly the $1,000-an-ounce mark Thursday.
That’s only a few bucks off the record high of $1,003.38 set in March 2008 – and no doubt will send more class rings, add-a-bead necklaces and other 14-karat claptrap to the melting pot.
And while many economists pooh-pooh milestones like “Dow 10,000” and “Gold $1,000” as meaningless superstition, your readers do hear about them and wonder, so it helps to figure out your plan of attack in advance.
Taking the serious route, consider an explainer on why gold prices hover so high in bad times – especially when the stock market appears to be backtracking a bit.
“Gold is a hedge,” said David Sowerby, portfolio manager for Loomis, Sayles & Co. in Bloomfield Hills, Mich. “It is one of the last best diversified asset classes compared to stocks. It is distinctly different in returns.”
It’s also a hedge against high inflation, which tends to make markets perform poorly.
“Gold holds its value in a period when stocks can go down,” Sowerby said.
Add in more demand from rebounding overseas economies like China and we’ve got a little 2009 gold rush going on.
Gold prices, like oil, are tracked by various global benchmarks, so be careful when quoting historical data or when preparing charts and graphics. The New York Mercantile Exchange (NYMEX) runs the Comex gold market; that’s the most commonly cited U.S. market. Check the Web site for historical data, educational info and more.
I think a more interesting business feature would focus on the industrial and commercial uses of the precious metal - beyond jewelry and coins – and how the soaring prices affect businesses in your area. It’s a component in This World Gold Council site – while somewhat optimistically promotional – offers a lot of ideas and background info.
Another angle – use the gold spike (and note that silver and other metals aren’t looking too shabby either these days) to take a look at active and/or obsolete mining operations in your territory. Either from a retrospective or what’s-next development angle, it would make for a great Sunday reader.
If you want to really have some fun – with a grain of salt - check out the tourism angle via sites touting gold-mining vacations, like Gold Fever Prospecting and Arizona Gold Adventures .
Google around, because by no means are all the gold camps out there located in the Wild West or the Yukon – they seem to be popping up throughout the south and on the east coast as well.
In fact, I see a few in Michigan – and, er, I seem to feel a fever coming on!
Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.
Just when all of the remaining ‘80s-style snake chains from QVC were safely tucked away, desire for the precious metal has spiked again, pushing its price to nearly the $1,000-an-ounce mark Thursday.
That’s only a few bucks off the record high of $1,003.38 set in March 2008 – and no doubt will send more class rings, add-a-bead necklaces and other 14-karat claptrap to the melting pot.And while many economists pooh-pooh milestones like “Dow 10,000” and “Gold $1,000” as meaningless superstition, your readers do hear about them and wonder, so it helps to figure out your plan of attack in advance.
Taking the serious route, consider an explainer on why gold prices hover so high in bad times – especially when the stock market appears to be backtracking a bit.
“Gold is a hedge,” said David Sowerby, portfolio manager for Loomis, Sayles & Co. in Bloomfield Hills, Mich. “It is one of the last best diversified asset classes compared to stocks. It is distinctly different in returns.”
It’s also a hedge against high inflation, which tends to make markets perform poorly.
“Gold holds its value in a period when stocks can go down,” Sowerby said.
Add in more demand from rebounding overseas economies like China and we’ve got a little 2009 gold rush going on.
Gold prices, like oil, are tracked by various global benchmarks, so be careful when quoting historical data or when preparing charts and graphics. The New York Mercantile Exchange (NYMEX) runs the Comex gold market; that’s the most commonly cited U.S. market. Check the Web site for historical data, educational info and more.
I think a more interesting business feature would focus on the industrial and commercial uses of the precious metal - beyond jewelry and coins – and how the soaring prices affect businesses in your area. It’s a component in This World Gold Council site – while somewhat optimistically promotional – offers a lot of ideas and background info.
Another angle – use the gold spike (and note that silver and other metals aren’t looking too shabby either these days) to take a look at active and/or obsolete mining operations in your territory. Either from a retrospective or what’s-next development angle, it would make for a great Sunday reader.
If you want to really have some fun – with a grain of salt - check out the tourism angle via sites touting gold-mining vacations, like Gold Fever Prospecting and Arizona Gold Adventures .
Google around, because by no means are all the gold camps out there located in the Wild West or the Yukon – they seem to be popping up throughout the south and on the east coast as well.
In fact, I see a few in Michigan – and, er, I seem to feel a fever coming on!
Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.
Labels: Arizona Gold Adventures, Gold, Gold Fever Prospecting, hedge
posted by Melissa Preddy
at
3:41 PM
2 Comments :
I would strongly suggest checking out the Silver and Gold Exchange before selling gold or silver to ANYONE. I did a great deal of research, online and offline, and learned a lot about this business. I checked pawn shops, jewelers, "gold parties", hotel "buying events as well as the online buyers, including the "as seen on tv" guys. I found that the Silver and Gold Exchange paid more than anyone else I could find. I liked the fact that they post the prices they pay per gram (beware of the places that quote in pennyweight/DWT) on a live price chart at http://SilverAndGoldExchange.com I also checked out their Better Business Bureau report and found they have never had a single complaint as opposed to HUNDREDS of complaints some other companies have! I recommend them 100%
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