Gold Q&A: Answers to our Subscribers' Most Pressing Questions

• How can I invest in gold outside of the U.S. or Europe?

  January 4, 2013, 12:00 PM

  As a student residing outside the US or Europe, how can I invest in precious metals?

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• What is a cyclical turning point?

  January 4, 2013, 12:00 PM

  Please explain "cyclical turning point." I am new and do not understand this term. Thanks.

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• Can it be profitable to invest in gold in India?

  December 28, 2012, 12:00 PM

  I read your articles, and found them very helpful. Thank you for your devotion to the average investor. Can you shed some light on the following regarding India:

  1. If the dollar collapses, what happens to gold vis-à-vis the rupee?
  2. We currently receive 9% interest in a fixed bank deposit. Inflation is 8%. Would it be more profitable to invest in gold in India? And will gold provide returns greater than inflation?
  3. Does fiat currency exist in India?

  Insight on the above would be very helpful. Thanks and regards.

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• When should I close a position based on one of your indicators?

  December 21, 2012, 12:00 PM

  The short-term gold stock indicator has no stop-loss level. How should I interpret it? What if the underlying instrument keeps going down for a number of days? When should I get out?

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• Can I use some of your indicators for trading GDX and XAU?

  December 21, 2012, 12:00 PM

  Can one also use the "gold stock" indicators for trading GDX and XAU, or is it exclusively for HUI? If not, would you be willing to develop indicators for those two as well?

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• What impact will the new oil deposit in North Dakota have on gold prices?

  December 21, 2012, 12:00 PM

  I'm curious how the new apparently endless oil deposit in North Dakota influences global economies, gas prices, and of course if it will have any influence on the US economy. Could it help America to reduce its debt? What impact will it have on gold prices?

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• Does a positive correlation of gold with the dollar imply a fundamental change in the market?

  December 21, 2012, 12:00 PM

  Periods of positive correlation with the dollar are beyond strange and highly unnerving. Are such periods an indication of some fundamental change in gold? It almost seems impossible. Any light you could shed on why gold sometimes tracks the dollar's every move would be greatly appreciated. This seems to negate the purpose we entered the PM market in the first place.

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• Is gold overvalued? If not, how high can it go?

  December 14, 2012, 12:00 PM

  I am basically coming to the conclusion that the price of gold has been outstripping the fall in the purchasing power of the USD for a while now. The main explanation for this is simply that gold traders are building in a premium into gold prices based on future erosion of the USD as a possible outcome of QE and global major central bank monetary easing i.e. expected inflation. Currently inflation is expected to rise. This has not happened, and interest rates will remain low for at least two years if not longer. Consequently there is no real reason for gold to trade relatively high – until inflation is confirmed which may take several years. In the meantime, gold will either stay range-bound at best, or could drop much further. My question is how far could you see gold falling in this "overvalued" context, and how long could it then take before gold prices break out decisively?

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