How High will Gold Prices Rise?


Gold is looking very good to many investors these days in light of the fact that many feel a sense of frustration at what is happening in the stock market. The American dollar is in a freefall and the global demand for the “yellow metal” is rising. It has surged 60 percent in the past year and is not showing any signs of slowing down or letting up. It is establishing new highs on what has become practically a daily basis. You could say that gold is on a roll!

In November of last year gold reached a record price. It peaked at $1,153.40 an ounce on the New York Mercantile Exchange (NYMEX). Analysts cannot say for sure how high gold prices will rise but they do expect its bullish trend to continue into the New Year. It was theorized during the latter part of 2009 that it would rise as high as $2,000 an ounce. This would represent a 73 percent gain from the current record levels at the time. Everything was pointing to the fact that the price of gold was going to continue to go up in 2010 and go up it did.

Both gold as well as its sister metal, silver continue to rise as investors look for safe avenues for their portfolios. These precious metals have become increasingly popular due to the fact that they have both hit record price levels that have not been seen in a very long time. In fact it has been more than 30 years since they were as high as they are currently. This is something for all investors to get excited about! Even if you have never been much of a gold bug, this may be the time to be investing in gold.

Many investors have grown tired of the uncertainty of markets and investments that are speculative. That is why they have looked to investments that are more tangible such as oil and precious metals. Small Cap companies have experienced positive benefits from this and welcome all of the new investors that are now turned in their direction.

In September of this year gold climbed to a record high in both New York and London. This is largely due to investors looking to protect their wealth and responding to the weakening of the dollar. In London silver rose to the highest price that it has been since the year 1980. Gold as well as silver has been perceived as a safe haven by investors and that is why its popularity has witnesses such a surge. Gold is testament to the fact that at the present time there is no confidence among investors when it comes to the dollar.
Gold is up 18 percent this year and is heading for its 10th consecutive yearly gain. Gold is on a true winning streak. In fact it is currently experiencing the longest winning streak it has been on since the year 1920. Gold bullion has outperformed treasuries, the vast majority of industrial metals and global equities. It has prompted record investments in products that are gold-backed and exchange-traded.

It is worth nothing that on the global investment arena gold is a bit player. The total value of tradable gold on the world market is estimated to be $5 trillion. That is very small when you compare it to the global GDP of $58 trillion and the market value of publicly traded shares that comes to an estimated $60 trillion.

When it comes to the world of investing, gold is seen as a safe haven when the markets are volatile. This metal is also seen as a hedge against inflation. Only you can decide if the price hike of gold will have an impact on your investing choices.