Housing bubble burst followed banks going bankrupt. What next? Tax revenue collected will decline as unemployment rises further, and the US dollar will weaken further and will not have much value in the months to come as more investors worldwide will invest in more tangible commodity assets like gold rather than volatile paper money, or in the next strongest currency.
Bullion dealers are seeing business revving up in this global meltdown and many have sold their houses in return for gold as historically gold prices have never gone down to zero, even if they dip periodically. 2008-2009 have shown increasing trends in the gold price in commodity terms.
Year USD/Troy Ounce
2000 272.70
2005 513.00
2008 865.00
2009 925.00 -1200.00 (Current-Expected)
London has the world’s largest market for gold trading, and in 2008, the value of gold trading rose 58% to a record $20.2 trillion (£13bn), according to trade body International Financial Services London (IFSL).
Americans are overpaying on American Gold Eagle coins by hundreds of dollars due to the huge mark-up by dealers, or even if they are bidding on eBay. Yet, it seems like a good proposition for short term gains. For long term gains, it would make more economic sense to invest in gold mining stocks or gold bullion bars that trade close to their bullion value.
For those who do not know, South Africa China is the highest producer of gold in the world since 2007, and may soon overtake India, the highest consumer of gold today in gold consumption also with the demand for gold being triple in 2008. China has an estimated $1.3 trillion invested in dollar-denominated investments, a mere 0.9% of its reserves in gold (600 tonnes), whereas US has 77.3% of its foreign reserves in gold. To increase China’s reserves even marginally, China will have to mass-purchase bullions which will skyrocket the prices to way more than the expected $2000. Gold is the only back to back the yuan as the dollar’s status as a reserve currency will decline sharply, and China is all set to do it.
Gold prices in India have hit record highs over the past few weeks, partly reflecting a sharp depreciation in the value of the rupee that has made dollar-priced yellow metal a lot more expensive, and more people are selling their gold jewelery or exchanging old jewelery which is good for short-term gains. But bad for long term gains as the price of gold is only expected to rise to as high as $1200 per oz by the end of 2009.
It’s time to act – Diversify your virtual gold portfolio, invest in gold mining stocks and hold your gold until you get the best value selling it.
I think people are scared to invest anywhere right now. In fact, many of the people I know are even putting their money under their mattresses like the old days!
Gold is a good investment right now but Forex Trading has become the buzz word after the recent crash in the stock markets. Learn Forex Trading it’s not difficult.
Hello. Great job. I did not expect this on a Wednesday. This is a great story. Thanks!
Gold is the real currency. As the financial crisis worsens, more and more people will start buying gold to protect their investments and saving. But there is a better way to make money in this recession. Forex Trading is being called the Recession Proof Business of 21st Century. There is always a bull market in forex. Learn forex trading and make a fortune. Do you know people use forex robots to trade forex on autopilot 24/5(currency markets are closed on weekends).
Great article. We are trying to create a community of gold traders and investors to share and discuss great articles like yours. Hopefully everything will be ready by Q2 2009. You are invited to http://www.silvergoldtrade.com
Interesting comment…
Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social, or currency-based crises.
These crises include investment market declines, inflation, war, and social unrest. Investors also buy gold during times of a bull market to gain financially.
Methods of investing in gold
Investment in gold can be done directly through bullion or coin ownership, or indirectly through certificates, accounts, spread betting, derivatives or shares.
Hope this helps to expand on your excellent post…
To buy the one-tenth ounce Gold American Eagle is the best way to acquire gold coins at the lowest price and in the most convenient form. They can be carried in your pocket or purse, are instantly recognized and accepted world-wide, and easily traded for cash or goods at a value close to the current spot price (meltdown value) of the pure gold metal they contain.
This should prove most useful to my nephew who’s been collecting gold coins since he was a small boy thanks for the info.
This is a nice post…thanks for the share…i will keep watching to your next post…this is very usefull thanks …
Nice informative post. Have got your feed to see what else youve got to say. Thanks.
Hello, i am kimbailey.
Fores Trading is being called the Recession Proof Business of 21st Century.
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kimbailey
real estate
Since 1968 the price of gold on the open market has ranged widely, from a high of $850/oz ($27,300/kg) on January 21, 1980, to a low of $252.90/oz ($8,131/kg) on June 21, 1999 (London Gold Fixing).
The 1980 high was not overtaken until January 3, 2008 when a new maximum of $865.35 per troy ounce was set (a.m. London Gold Fixing).
The current record price was set on March 17, 2008 at $1023.50/oz (am. London Gold Fixing).
Where is it going to go next?
Great post. I really enjoy information on like this. Thanks for the info. Gold is the best way to protect wealth in this failing economy.
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
What do u think will the price of Gold get high in furture? There are many people predicting that.