Written By Basilio Chen

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Investment in Gold is best done holding the physical gold compared to gold stocks. However, gold stock information may be more readily available at least for short term purposes.
I prefer forecasting financial instruments including stocks using supply/demand concepts as a start and nothing better than in combination with technical analysis when available.
Most all traded instruments have price and volume as a minimum set of data. The longer term volume charts are more useful – monthly and weekly.
Gold as measured by the GLD volume has now decreased to 2007 volume level. It has been consistently coming down in price and volume since the volume extreme in August 2011 when prices of gold went parabolic. (All parabolic moves end the temporary trend and with a major correction – see Chart below).

As gold is in a strong fundamental uptrend, the low volume shows decline simultaneous decline in prices is favorable for when buying beings prices should begin moving into a new uptrend as was the case in August 2009.