Fool's Gold Report: Bullion Prices Jump to 2014 High

Gold rose to its best level in four months. Find out what's behind the move.

Feb 24, 2014 at 5:33PM

A booming stock market brought gold prices along for the ride, as enthusiasm for perceived higher-risk assets enhanced investors' appetite for both asset classes. According to preliminary settlement figures, April gold futures at the Comex rose $14.40 per ounce to $1,338, their highest level in about four months. March silver futures posted similar percentage gains, rising about $0.27 per ounce to $22.05. Those moves sent the SPDR Gold Shares (NYSEMKT:GLD) and iShares Silver Trust (NYSEMKT:SLV) up about 1% each, but mining stocks didn't respond as favorably, as the Market Vectors Gold Miners ETF (NYSEMKT:GDX) finished up just 0.7%.


Today's Spot Price and Change From Yesterday


$1,337, up $11


$22.00, up $0.15


$1,435, up $11


$739, up $1

Source: Kitco. As of 4 p.m. EST.

Will trouble in Ukraine be positive for gold?
Investors turn to gold in times of trouble, and one of the biggest risks that drive gold prices has to do with political events that have the potential to affect world markets. The unrest in the Ukraine definitely qualifies as such an event, with the ouster of the nation's president over the weekend. Given the important policy decisions at stake -- whether to align itself more with Europe or to maintain its historical ties to Russia -- investors want to protect themselves against what could become a much more violent conflict if a resolution isn't reached in the near future.

Gold And Silver

Image sources: Wikimedia Commons; Creative Commons/Armin Kubelbeck.

For now, it seems unlikely that the Federal Reserve will react any more strongly to events in Ukraine than it did to problems in Argentina and Turkey. As long as the impact on the U.S. is minimal, the Fed appears determined to continue its path toward removing quantitative easing steadily throughout the course of 2014.

Geopolitics are playing a role in the metals markets as well. One key reason why Newmont Mining (NYSE:NEM) hasn't participated in the big climb for gold-mining stocks is that some of its key production assets are located in Indonesia. Both Newmont and Freeport-McMoRan Copper & Gold (NYSE:FCX) are highly exposed to Indonesian policies that call for export taxes and demand for value-added processing in-country rather than exporting raw unprocessed copper ore. Newmont's Nusa Tenggara unit said that once its local warehouse reaches its 80,000-ton capacity, it might have to shut down its mining activities since it can't afford to pay export duties.

Gold investors need to keep their eyes on the political situation worldwide. If tensions rise, the impact on gold could be swift and positive. But a reduction in tensions could take away one key support for gold's recent rise, making further gains dependent on fundamental demand from both consumers and investors for gold, silver, and other precious metals.

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Dan Caplinger owns shares of Freeport-McMoRan Copper & Gold. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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