Market Analysis: GOLD 4/4/2014

3 Drivers For Gold Price In 2014

There are many factors that determine the price and value of gold. Below are some of the key factors that change the value of the precious metal.

• The gold price is driven by global liquidity, fed by international balance-sheet expansions, impacted by trade deficits built up in countries like China.
• Over the last 40 years, one ounce of gold typically bought 15 barrels of West Texas Intermediate oil. That ratio has been knocked down to about 13:1.
• Any significant catalyst that will erode fiat money purchasing power, such as falling industrial production, more unemployment or broader trade deficits, could take gold much higher.

Like the rest of the market, Dynamic Funds is being choosy as it shifts cautiously from bullion to equities, in what Vice President and Portfolio Manager Robert Cohen describes as "baby steps." In this interview with The Gold Report, Cohen explains his method of analyzing miners and discusses companies that offer good prospects.