World gold prices continue to climb steadily upwards and are now sitting at over $1,500 per ounce on the open market. Gold has traditionally been seen as a safe place to invest your money as it has always shown a steady increase in price. The majority of investors look for safe place to park their money when there are signs of unrest anywhere in the world.
There are many different factors that affect the price of gold. When there are any signs of either economic troubles such as are being seen in the US or political turmoil such as is happening in many countries in Africa and the Middle East, the price of gold does exactly what it has been doing lately, which is to climb at almost record speeds.
The world has long based its view of financial stability on both the strength of the US Dollar and the US economy. As long as both are considered to be strong, the world economy seems to follow suit and the price of gold either stabilize or drop back slightly as investors turn to buying stocks and bonds and currency.
When the markets show any signs of uncertainty, investors will sell off the stocks and drop their currency in favor of a more solid and guaranteed investment. This investment is gold and in recent years silver as well as other precious metals. Unlike other investments such as oil that can fluctuate wildly over a short period of time, gold may drop slightly for a short period of time but overall it has increased in value for decades and new record prices are being reported on an almost daily basis.
If you want to look at gold as a safe investment and try to predict where it will go in the future, you have only to look at the prices in recent history. In the last four months the average price of gold has risen by over 14% after slight drop in February and now seems to be moving upward like a freight train that is out of control.
The current unrest in Libya and other middle east nations has sent investors scrambling to buy gold amid fears that the price of crude may start to fall off. Further political unrest in Yemen and reports of hundreds of protesters marching in the streets of Iran are also driving what is known as the "fear factor" which is a major contributor to major increases in the price of gold.
Many investors buy into gold as a hedge against the inflation that is just now starting to show its ugly face, not only in developing countries, but in the US as the prices of commodities are finally starting to reflect the rapid rise in the cost of crude oil. The thought behind this is that inflation is going to cause the still staggering economic growth to slow down even more and this will have a direct effect on the values of the various world stock markets.
Even more recently Standard and Poor's has announced that it has lowered its outlook on US long term debt from "stable" to "negative" due the government's current inability to show any signs that they are going to be able to get a grip on our current financial situation. This has driven even more investors into putting their money into safe haven investments such as gold.
Does anyone think that the current trend is likely to reverse itself at any time in the near future? When you take into consideration the recent earthquake and tsunami in Japan, the fighting still going on in Libya and the unrest in several countries in North Africa and the Middle East, the general outlook is for the price to keep going up.
According to a recent report from Director of Commodities at CPM Group, Carlos Sanchez, the continued political gridlock in Washington could easily drive the price of gold as high as $2,000 or more. The US government is expected to raise the debt limit and this will be the next major event that will affect the price of gold.
This continued increase in the price of gold is proving to be a virtual windfall for anyone who has gold to sell. At The Gold Clerk we are following the pattern of record prices for gold and silver. Because we stay on top of the latest prices we are able to offer the highest prices you will find anywhere for your unwanted gold jewelry.
There are many different factors that affect the price of gold. When there are any signs of either economic troubles such as are being seen in the US or political turmoil such as is happening in many countries in Africa and the Middle East, the price of gold does exactly what it has been doing lately, which is to climb at almost record speeds.
The world has long based its view of financial stability on both the strength of the US Dollar and the US economy. As long as both are considered to be strong, the world economy seems to follow suit and the price of gold either stabilize or drop back slightly as investors turn to buying stocks and bonds and currency.
When the markets show any signs of uncertainty, investors will sell off the stocks and drop their currency in favor of a more solid and guaranteed investment. This investment is gold and in recent years silver as well as other precious metals. Unlike other investments such as oil that can fluctuate wildly over a short period of time, gold may drop slightly for a short period of time but overall it has increased in value for decades and new record prices are being reported on an almost daily basis.
If you want to look at gold as a safe investment and try to predict where it will go in the future, you have only to look at the prices in recent history. In the last four months the average price of gold has risen by over 14% after slight drop in February and now seems to be moving upward like a freight train that is out of control.
The current unrest in Libya and other middle east nations has sent investors scrambling to buy gold amid fears that the price of crude may start to fall off. Further political unrest in Yemen and reports of hundreds of protesters marching in the streets of Iran are also driving what is known as the "fear factor" which is a major contributor to major increases in the price of gold.
Many investors buy into gold as a hedge against the inflation that is just now starting to show its ugly face, not only in developing countries, but in the US as the prices of commodities are finally starting to reflect the rapid rise in the cost of crude oil. The thought behind this is that inflation is going to cause the still staggering economic growth to slow down even more and this will have a direct effect on the values of the various world stock markets.
Even more recently Standard and Poor's has announced that it has lowered its outlook on US long term debt from "stable" to "negative" due the government's current inability to show any signs that they are going to be able to get a grip on our current financial situation. This has driven even more investors into putting their money into safe haven investments such as gold.
Does anyone think that the current trend is likely to reverse itself at any time in the near future? When you take into consideration the recent earthquake and tsunami in Japan, the fighting still going on in Libya and the unrest in several countries in North Africa and the Middle East, the general outlook is for the price to keep going up.
According to a recent report from Director of Commodities at CPM Group, Carlos Sanchez, the continued political gridlock in Washington could easily drive the price of gold as high as $2,000 or more. The US government is expected to raise the debt limit and this will be the next major event that will affect the price of gold.
This continued increase in the price of gold is proving to be a virtual windfall for anyone who has gold to sell. At The Gold Clerk we are following the pattern of record prices for gold and silver. Because we stay on top of the latest prices we are able to offer the highest prices you will find anywhere for your unwanted gold jewelry.
Source...