Gold Prices Could Rise to $5,000 by 2010
Better Do Your Jewelry Shopping Now!
McEwen's announcement comes after a steady month long decline in the price of shares of US Gold Corp leading to some speculation about the announcement's timing. McEwan's estimates, however broad, did appear to hold some water due to increased demand for gold from investors seeking liquid assets, and the expected tightening of the gold supply. Despite his personal stake in investor confidence in gold commodities McEwen is considered an expert in his field.
Savvy investors have long used gold commodities as protection from depreciation of the U.S. dollar. But why the sudden, and continually growing, interest in gold commodities? The reasons are varied but some blame: the recent rocky performance of the stock market, a protracted war in the Middle East, and the sub-prime lending bust for driving investors to seek more steady and liquid assets.
Further compounding the rise in gold prices is the expected tightening of the gold supply. Several factors are expected to lead to decreased production of gold including rising costs of mining gold and increased taxes national governments are expected to levy against gold mining companies.
What does this mean for the average person? Gold demand is highest in the Middle East, and Asia with the United States following closely behind. If prices rise as high as McEwen predicts the jewelry industry will be profoundly affected and demand for gold jewelry will drop significantly at least in most countries; India's love affair with gold is spurred by religious and cultural factors, its demand often remains constant independently of the gold market. While the decreased demand for gold jewelry will not affect the price of gold very much due to interest from investors it will affect the general U.S. public with less gold jewelry being available at a much higher price. Perhaps it is time for savvy consumers to purchase whatever gold jewelry they are secretly lusting for before the massive price increase, or possibly consider platinum jewelry.
Sources:
Published by A. Kairi
A. Kairi is a natural beauty care and crafting enthusiast that has operated a natural beauty care products business since 2004. She has held dozens of natural beauty care workshops in private venues and at M... View profile
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- Expert claims gold prices will rise to at least $2,000 by 2010 and possibly as high as $5,000
- Demand for gold jewelry is expected to drop if the price of gold raises as drastically as predicted
- Investor demand for gold commodities is expected to continue to rise due to war and the economy
14 Comments
Post a CommentI don't think 5K is coming anytime soon, but I wish I'd bought almost anything of value a few years ago instead of stocks!
Its 2010 and the value of gold has been fluctuating around $1200 highs.
If the bankers and politicians didn't control 99% of the gold and it WERE up to "us" then the $2 to $5K example may have been possible, but that's not the way it works. Even the rich only have about one percent of the gold in the world. Now, speculation is that Silver may rise to $5,000 over the next couple years. History repeats itself right? It is true that silver is much more in demand than gold, its non-taxable and more likely to sky-rocket. I recommend investing in as much as you can however don't rely on 5 grand an oz. for it EITHER. God Bless America! God Bless The World! :-)
my bad okefenokee
OKEEFENOKEE*
"There are free figs to be had in the market." Just kidding...
Greed eventually overreaches itself. If gold ever got this high, the world would be in very bad shape. No, we don't want the gold standard back - ever.
Carry on dreaming fools!
$5,000 an ounce is about right if you adjust for inflation.
What always gets me is how the price of everything is always talked about in terms of
"as adjusted for inflation" for instance when you're talking about a house or a car or
the price of gas, but when it comes to gold, all you hear is, "Gold is at it's all time
high of 850 an ounce." The sentence is never followed with, adjusted for inflation,
that would now be...............
I wonder why that is..........
Sentiment: BUY
Look at the source for this article, World gold council. Its critical to know when to sell gold and not to just keep buying.
http://www.ongrowthtrack.com/2008/03/04/gold-prices-due-for-a-correction/
$5,000 seems high, but I have no doubt gold will spike over $1000 very. Glad to see another gold bug on AC!
i believe it
$5,000? I'll believe it when I see it. With 3-years of 10% appreciation, you'd be looking at $1,000...which is optimistic itself. I say $850-$900 per ounce is more likely.