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Bullets, Beans


Tuesday, 10 January 2012

Gold may extend best rally since 1920

Gold may be able to extend its best rally since around 1920, as investors and collectors alike are sure to store their wealth away based on the still continuing issues facing Europe and the world at large.

Slowing global economic growth and inflation is sure to play a part in this as well.

[Editor’s note: let’s not forget the corrupt monetary policy employed by the private Federal Reserve, which is aimed at putting even more money in the hands of the corrupt banking elite and less in the coffers of the American people as a whole.]

“The current global macroeconomic environment is very conducive for [sic] higher gold prices,” said Sundeep Sikka, Mumbai-based chief executive officer of the money manager, which runs India’s second-biggest gold exchange-traded fund.

“The fundamental outlook for gold remains extremely bullish and paints a rosy picture for gold bulls,” he added.

Bullion reached a record $1,921.15 in September as investors tried repeatedly to find a way to diversify away from equities and some currencies due to the fact that Europe continued to struggle with bankruptcy issues; issues that have affected the rest of the financial world as a whole.

The yellow metal may average around $1,750 – $1,780 an ounce this year and trade as high as $2,055, according to Market Association survey of traders and analysts.

“The rise in volatility across all assets makes investors jittery about their investments,” Sikka said in e-mailed responses. “We see gold continuing to attract interest even in 2012. Investors are looking for a haven to park their money as the market sentiment for equity is uncertain.”

This ties into what I have been saying for some time now, which is that gold is going to spike high and make a run at $2,000 an ounce in 2012.

Even if it falls short of that predicted gold, it is obvious that the yellow metal remains an excellent way to protect assets, while trying to hedge against failures of other stock choices made in the past.

Gold is also a great way to protect oneself from inflation, which is occurring not only on a nation level, but indeed an international one as well.

Overall in 2011, gold bullion rose 10 percent. And while prices took a bit of a hit at the end of 2011, overall it was still enough to keep gold rising for an 11th consecutive year.

Gold for immediate delivery fell 0.4 percent to $1,611.13 an ounce as of earlier today. The final day’s numbers are not out at the time of writing, but it seems as though this is the level it will stay at for the day.

Just remember this important fact in 2012: prices may fall a bit in the short term (use that opportunity to buy) but they overall price should remain strong in the long term. Get with your financial investor and make some plans to start investing.

[Editor’s notes: if anyone doubts the viability of diversifying into gold, I highly recommend you look at charts measuring the value of gold over the past century, especially when compared to the dollar.

You can find one table going back more than a century here and a graph going back to 1960 here.
You will likely find that you wish you could go back in time and buy some gold as it has risen at an
astonishing rate and has taken no major hits like so many other investment sectors.

At this point I think it is a bit silly to not at least diversify a small percentage of your assets into gold, silver and other physical commodities as you essentially have nothing to lose and everything to gain from doing so.
Of course I’m not a licensed financial adviser; I’m just giving some common sense recommendations gleaned from looking at history and the actions of governments and powerful financial institutions.

Don’t take anyone’s word for it, do the research yourself and see what conclusion you come to.]

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