How High Will Gold Go?
For centuries, gold has been a highly sought-after currency. Gold has achieved international currency status and is perhaps the most commonly accepted and liquid form of currency in the world today. Gold remains as a “store of value” throughout most of the industrialized nations and has developed its reputation as a “safe haven” asset accepted worldwide, all while remaining among the most scarce physical assets. Gold prices are positively impacted by the weakness in the U.S. dollar, otherwise commonly referred to as ‘inflation’.
Inflation occurs in countries like the U.S., where the currency is not backed by anything other than the full faith of the government. In the U.S., the Federal Reserve Bank may print currency thereby de-valuing the existing currency in circulation. The most recent examples of currency de-valuation are a result of the Federal Reserve’s stimulus programs referred to as; Quantitative Easing (Q.E. I & II) Prospects for Q.E. III abound with financial experts predicting that the U.S. government will once again turn to economic stimulus, or printing more currency, to avoid a double-dip recession. The end result, holders of physical gold benefit as inflation takes hold and the dollar continues to weaken. The answer to the question of; “how high will gold go?” is greatly dependent upon how weak will the U.S. dollar get? (The price of gold is pegged internationally to the U.S. dollar).
It’s no coincidence that gold has continued to rise in value over the last 11 consecutive years, but most notably since 2006, the beginning of the economic downfall in the U.S. Starting with the early stages of the subprime meltdown, spreading to the prime real estate markets, both residential and commercial, and ultimately to the core of the banking system, now international in scope; gold has continued its skyrocketing performance. Global economic pressures resulting from technically defaulted countries like Greece, equate to even greater reliance on international economics to support the U.S. dollar. Absent any economic reversals, the recessionary trends will continue for the foreseeable future. U.S. housing prices and most notably the lack of consumer confidence, all but assure the continued rise in both gold demand and prices. Banks and investment conglomerates such as; UBS Securities, Merrill Lynch, Deutsch Bank and J.P. Morgan Chase, all agree that gold may exceed $5,000 per oz. in value someday. Others experts agree that it could rise well above that number.
The price of gold at the moment is irrelevant. What’s important is that you get started TODAY and enjoy the safety, protection and profit opportunity that gold owners enjoy. Call one of the United Gold Direct non-commissioned representatives at (888) 502-3222 to learn about investing in a gold IRA and how you can get started in protecting yourself and your family’s future in light of a prolonged recession.