You may have noticed that our staff here at Healthy Financial Habits have lately been following the price of gold closely. It is difficult news to ignore when the price of gold rising so rapidly. In fact gold prices have climbed 7% in the first half of this month alone. Gold has increased in value over 25% so far this year. It is no wonder why the subject of gold is getting so much attention today.
The trend continued today as gold surpassed the previous record set on Wednesday of $1119.00. In the early morning hours gold jumped to a new high of $1123.40. Factors such as India’s purchase of 200 metric tons of gold from the International monetary fund last week and the falling value of the dollar have been named as reasons for the increase.
At this point the rising price of gold seems to be unstoppable. Many analysts are in disbelief that gold prices have climbed so high and have held up for so long. So how high will gold go? Analysts from around the world have weighed in and most can agree that prices are going to remain high or climb even higher.
Goldman Sachs predicted on Wednesday that gold will reach $1,200 an ounce by the end of the year.
Jim Rogers of Singapore based Rogers holding believes that gold will reach a high of around $2,000 an ounce as it did back in 1980. (adjusted to todays dollar)
Ellison Chu from the Standard bank of Asia believes that the price will remain around 4 digits.
David Levenstine an investment adviser believes that the price will reach around $1,300 per ounce due falling value of the dollar and inflation.
No one really knows with 100% accuracy what direction gold prices area headed. My personal beliefs are that as long as the United States government continues to increase their debit the dollar will fall and the value of gold will rise. Many investors realize this and are buying up gold.
Before you convert you cash to gold you might want to consider this: Gold reached $850.00 an ounce in 1980. If you turned your cash in then you would have had to wait 28 years later for gold prices to reach $850.00 an ounce once again. I suppose the real question is do you expect to dollar to recover soon?
Stay up to date with the latest news on gold and other commodities by visiting Healthy Financial Habits daily. Our knowledgeable staff is dedicated to delivering fast and accurate news that can be a useful tool while planning your financial future.
Greg Jackson