April 20, 2011 Price of Gold-Can it Go Higher
The price of Gold just surpassed $ 1,500 per ounce closing at $ 1,505.90 today, giving investors a 25 % return and has only climbed higher each year since 2001 -over 10 years. In those 10 years the world’s economies have weakened or they are dead broke. Governments have over spent their budgets and cannot pay off their debts.
Price of Silver Expected to Rise to $ 70.00 or up to $ 100.00 an Ounce
Silver prices just topped $ 44.00 an ounce hitting a 31 year high cycle due to the scarcity of it and is not about to drop soon. In 2010 the price of silver rose 150 % whether by market speculation or a possible bubble ready to burst in the precious metals market. Precious metals have always been the beacon indicator of rising inflation and economic woes in the global economies.
Graph Showing the Price of Gold for the Past 10 Years
Silver is used in industrial processes and 95 percent of the world’s silver is gone, consumed by industrial processes and irretrievable forever it is gone. Silver is used to make mirrors, radio frequency technology, explosives, chemicals and silver oxide used in watch batteries. The demand has exceeded the supply of the world’s silver and that trendy bit of information indicates the value of silver will rise sharply in the near future.
During tough economic times, the price of gold has been the standard bearer of bad news as its price rises due to lack of faith in out of control government spending. Political unrest, can either make silver and gold prices go up or down
In Europe, only two countries of the European Union are thriving, while the others are declaring bankruptcy unable to meet their obligations. The Euro dollar is not fairing much better closing at $ 1.451 US today.
Standard & Poor’s Downgrading the US Triple AAA Credit Rating
It is always a negative when your credit rating is degraded and it is a sign of the decline of the United States dollar which could have impacted on the rise in precious metal prices. It also signals that the US dollar not a preferred currency when major world power countries are using their own currency to trade not the US greenback.
The United States now holds the dubious title of having its debt equal its Gross National Product which means it spends as much as the whole country produces totally unhealthy for investors.
The second problem is the lack of true regulation of Wall Street where the 2008 meltdown had worldwide destroyed the finances of banks worldwide.
The shorters have re-entered the stock market setting up rising prices in oil, precious metal and major stock commodities.
Wall Street is still raking in billions of dollars in profits, but not many have faith that another disaster is not in the offing. The fact that most CEO’s are still in charge on Wall Street and Ben Bernanke is still the head of the Fed does not exude faith in the US financial system.
The price of gas is rising rapidly and hovers at $ 4.20 a US gallon which also negatively impact the economy which impacts fear into the stock market.
The price of silver will rise further due to the physical metal shortage and the focus is on the physical market is
The physical market will never be devalued as much as the paper dollar and when you hold the actual gold or silver physically the benefits are far greater.
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