What if the purchasing power of the dollar falls dramatically? What if the relationship between gold and the USD re-calibrates to the ratio of 1980? Here is an interesting video that looks at this in detail. It’s actually quite scary but the points are well argued.
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.
Gold climbed alongside the dollar after a deal was struck to help Greece. Also, the same concerns on Greece. Spain and Portugal which has seen the dollar increase against the euro by 5.1% this year are driving the gold price up. Read more in Business Week.
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.
Some of the best analysts with solid track records are predicting $5,000 gold. This is based on the amount of new money created in the last couple of years in order to stimulate economic activity and prevent the banks from going under. The will have an effect on inflation, to what extent will determine where gold will go. This interview is worth checking out before you decide to buy gold.
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.
An interesting article on the outlook for gold prices in the next few years that was published by gold-eagle.com counters the arguments made by the gold bears out there.
Here is a quick summary of the pro-gold argument:
Even if you are not as sure about the future of gold. I believe that is a solid prudent investment that everyone should make. Even as a hedge that gives you peace of mind. Buying gold can be justified on several levels.
Check out the full original article.
What will 2010 hold for precious metals? Here is David Morgan’s take. In this video he looks at Gold, Silver and Platinum and lays out what he thinks will happen in 2010.
This video was posted over 2 years ago. It’s still quite interesting. Most people look at gold as a hedge. Private investors should look to hedge other investments. As we have seen, with the recent financial turmoil having a hedge makes a lot of sense. For those of you new to gold this video provides a good introduction.
