Just as a doctor may see cancer where others see only a mole, or a mechanic may see expensive repairs where others only see a drop of leaking oil, a Gold Trading Insider sees items and articles in the news differently than those who are not educated and experienced in the ways currencies, finances, markets and investment vehicles. The purpose of these articles is to give the reader an insightful understanding into the news and economic matters that pop up daily, from a professional point of view.
Recently I read an online article published by TheWeekUK.com. The article cited no particular author however it was dated March 11, 2015. The article is titled “Gold Price Will Rise As Apple Watch Boosts Demand” and then the byline states “Apple may become world biggest gold price catalyst as it buys up almost 750 tons of gold per year.”
Personally, I am not an Apple guy. For whatever reason or reasons, I never bought any of their products. However, I have brothers and sisters and even a mom, whose lives seem to revolve around little gadgets that have an icon of an Apple missing a bite. Therefore, the immense popularity of Apple products is not lost on me. I see the news reports and hear the Internet chatter every time a new phone or tablet or iPod is being released. And it seems that for days or weeks after the debut of a new Apple product every corner of the American press and media is commiserating about the shortfalls of the new gadget, or they are praising a new Apple innovation that nobody can believe we were able to previously live without.
Apple Has Been Stock Market Gold.
Apple is popular in the economic world as well because it is one of those amazing American success stories about a couple of guys who started with nothing more than an idea and a garage and turned it into a multibillion-dollar world wide domination of the market that it arguably created. Just as people wish they won the lottery or daydream about what they would buy with their new-found wealth, those that follow and invest in the markets closely and heavily, wish that they had purchased as much Apple stock as they possibly could back in the beginning when the names Jobs and Wozniak were not synonymous with Silicon Valley and billionaires.
Those points being made, I have to ponder what impact Apple bringing a watch to market will make in the gold market. A point that I often tried to make when I was a Senior Analyst at ITM Trading and speaking to clients or potential clients, is that gold has become much more prominent and necessary in their everyday lives than it was just 20 years ago. This trend will not change. 20 years ago there were no flat-panel televisions. Cell phones were rare, and few professionals could justify the heady expense that came with owning one. Back then not every house had a computer, much less several, and a dial-up Internet was the norm, so having a half-dozen wireless devices connected to a wireless router in your house seemed as reasonable and likely is driving NASA’s moon rover to work every day would. Twenty years ago if you were bringing gold into your home chances were pretty good that you knew about it. For instance perhaps you purchased a piece of jewelry for a loved one, or chose to go with the then popular “gold package” on your new Lexus.
Apple, And Everybody Else, Uses Gold.
Today, however, even if you never purchased gold for investment purposes, you have probably purchased much more gold then you have realized. For instance your flat-panel HDTV requires gold in it’s circuit boards to function. When you connect your new HDTV to your Blu-Ray player you are more than likely connecting them with a gold-plated HDMI cable. When you pick up your new smart phone, there is gold in its circuit boards as well. The same can be said for your iPad and iPod also. Apple is now also making televisions, and apparently they have reinvented the television as my family members tell me, and I bet you there’s gold in those.
In fact, hidden inside the old DVD players and the old flip phones and the old laptops that you have stacked on top of old computer towers, are little bits and pieces of gold that are necessary to these technologies. If you don’t believe me, just do a quick Google search for “how much gold is in a smart phone” and then multiply that minuscule amount by the tens of billions of smart phones, computers, HDTV’s, etc. that are out there working or not.
If you have not thought about how much gold goes into the electronics that we require for everyday living now, you now have something to ponder. Some very basic critical thinking would surmise that as long as the demand for gold in electronics remains and increases, and as long as gold must be mined from the earth and refined by expensive processes and is a finite resource, that the price of gold will rise steadily if not at least remain constant as long as the laws of supply and demand hold true.
If you believe in gold, and the power of supply and demand, then adding gold to your financial portfolio is an easy decision, and ITM Trading makes owning gold easy.
We believe that everyone deserves a properly developed strategy for financial safety.
Chief Market Analyst, ITM Trading