This is a remarkable day for the DOW. There has been some heavy swings and a borderline collapse. This backs up the case to have Gold as a part of your investment portfolio. A safe haven to hedge against any dramatic falls in stocks should be part of any sensible investor’s portfolio.
If the current crisis in Greece spreads there is a summer of volatility ahead on both currency and stock markets. Think about Gold because there may be an opportunity to get a good deal during this current gold rally because of people selling to realize profits.
Gold Group’s John March lays out the chances of hyperinflation and that physical gold is a good way to protect against it. He predicts $1,500 – $1,600 gold by year end.
Interesting perspective on commodities and gold by Jonathan Barratt on Bloomberg. This discussion lays out where gold is likely to be by the end of 2010. It shows some more headroom for gold.
Jim Rogers gives his thoughts on what is likely to happen by the end of 2010/start of 2011. It’s quite interesting and some great points are made. This indicates that commodities and gold could be a safe place to be if global currencies collapse.
Goldman Sachs are gold bulls. They predict the price of gold may go to $1,350 an ounce within the next year. They also believe that interest rates will not be raised until 2012. Given how easy it is for private investors to buy physical gold it seems wise to act on Goldman Sachs’ prediction.
It’s common sense to put a portion of your savings into gold at the moment. Especially if Goldman Sachs’ prediction of no interest rate increases until 2012 comes true. This is a fabulous opportunity for you to protect the purchasing power of your savings. The relationship between low interest rates and money supply have serious implications down the line. Even if you are not as bullish as some of the more optimistic gold bulls out there, you should take Goldman Sachs’ prediction seriously. Remember, you can easily buy gold online and save a lot of money on commissions.
Interesting video that I found on YouTube about why physical silver and gold is a better hedge against hyperinflation than ETFs. Again the choice on how to invest in gold is totally up to you. You know what’s best for you when you buy gold. However, it’s always good hear a broad range of opinion about buying gold before you invest.
The Chinese government has increased the amount of deposits banks must hold on money lent out. This is expected to reduce the amount on money flowing into commodities, and therefore, some predict that the Gold price will fall back.
This may create an opportunity to buy in the dip. However, the purchasing power of China’s currency will improve in the long term as a result of this rule on the fractional reserve system Chinese banks implement. If your currency is the Dollar, Euro or GB Pound this new regulation won’t have a significant impact commodity prices in the long term.
