Every market is due for a pullback in order to have a healthy adjustment. The uncertainty about the economy’s strength and the fears about rising prices, not to mention worries over global instability, will continue gold’s growth to super heights. Another wild card would be the newly “liberated” Arab nations’ anti-Israeli protests that could ignite turmoil and could send the price of oil and commodities much higher. Markets cannot continue to peak without a correction said President Ron Fricke of Regal Assets.It’s all about perspectives. Smart investors don’t need to second guess that inflation is here and that the world is in turmoil. Besides, you can’t get a handle on US economy issue, because there is no handle.
Specialist gold analyst, Jeffrey Nichols, has continually been ratcheting up the number of reasons he sees for being bullish on gold, however, as he told Mineweb on the sidelines of the New York Hard Assets Conference last week, some of these are expansions of the multitude of factors among them: The U.S. Fed’s policy of an unprecedented level of money creation coupled with zero (or effectively negative) interest rates, the difficulties in reaching agreement on the U.S. budget coupled with enormous U.S. sovereign debt and eroding creditworthiness, the move by Central Banks to become buyers of gold rather than sellers, the onset of vehicles like ETFs which make it easier for the investor to buy gold, plus the increasing acceptance of gold as an investment class amongst major investing institutions, and finally, the limited growth in global mine production of gold .
He reckons gold’s fortunes remain very bright. With all the supportive price drivers ready to burst forth, “look for new all-time highs in the months ahead.” He does stick his neck out on a specific price prediction and reckons “gold has every chance of reaching $1700 by the year end, $2000 in 2012 and “possibly $3000 or even $5000″ before a time when he feels the cycle may eventually reverse later in the decade.”
Source: http://goldcoinblogger.com
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