Gold last week careened to a record high $1,414.85 an ounce in a surge that was sparked by the U.S. Federal Reserve's plan to purchase $600 billion of U.S. Treasuries in a second phase of quantitative easing (QE2).
The yellow metal may have yet more room to run, as uncertainty in the marketplace remains high and the dollar low.
Still, at this pace gold is increasing too quickly to account for inflationary concerns.
That's saying a lot, because there are some pretty serious reasons to be concerned about inflation. With these new rounds of quantitative easing, the massive debt loads the U.S. has incurred, and Treasury Inflation-Protected Securities (TIPS) going into a negative yield structure, you'd have to be a little off to expect stable growth.
Gold Bubble
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How to Predict – And Profit From – the Bursting of the Gold Bubble
Special Report: Why Investors Must Buy Gold … Before it Runs Away in Price
As gold hovers near $1,200 an ounce and pundits speculate about a "gold bubble," it's important for investors to remember that a mere decade ago the picture was very different.
In the year 2000, gold sat at an unimpressive annual average of $279 an ounce - a two-decade low. At that time, most analysts thought gold was finished as a monetary metal. They said its price would never recover and only kooks with tin hats would invest in it. I was one of the very few financial commentators publicly saying that gold was not only viable, but entering a long-term uptrend.
With the benefit of hindsight, we can all see that the consensus was wrong. Gold has performed remarkably against the Dow Jones Industrial Average, the Nasdaq Composite Index and U.S. real estate. The reason I was able to confidently forecast this result is because I ignore the 'certainties' determined by Wall Street consensus, and instead study the fundamental trends.
In the year 2000, gold sat at an unimpressive annual average of $279 an ounce - a two-decade low. At that time, most analysts thought gold was finished as a monetary metal. They said its price would never recover and only kooks with tin hats would invest in it. I was one of the very few financial commentators publicly saying that gold was not only viable, but entering a long-term uptrend.
With the benefit of hindsight, we can all see that the consensus was wrong. Gold has performed remarkably against the Dow Jones Industrial Average, the Nasdaq Composite Index and U.S. real estate. The reason I was able to confidently forecast this result is because I ignore the 'certainties' determined by Wall Street consensus, and instead study the fundamental trends.
Why the Gold Bubble Will Peak at $2,000 in 2010
Gold surged over 60% in 2009, hitting new highs practically every week. But, we haven't seen anything yet. This is just the beginning of one of the biggest gold rallies in history. Find out why gold will easily hit $2,000 this year in this report.
The Five Reasons Gold Will Hit $5,000
Let me get right to the point. Gold's going to $5,000 an ounce.
I know that sounds preposterous to most people. In fact, some of you probably think I'm crazy.
But for a whole host of reasons, $5,000 may well end up being a conservative estimate.
So before you start posting comments that I've gone bonkers, hear me out...
I know that sounds preposterous to most people. In fact, some of you probably think I'm crazy.
But for a whole host of reasons, $5,000 may well end up being a conservative estimate.
So before you start posting comments that I've gone bonkers, hear me out...
For more on gold’s looming "superspike," read on...
Don't Miss Out on the Looming Gold Bubble
Gold was all the rage again last week. But why is it rising, and does anyone really know what it's worth?
According to the way I calculate momentum, gold has just barely entered the gravity-free zone – where it has the potential to start advancing a lot, with much more fluidity.
And that translates into much higher prices.
According to the way I calculate momentum, gold has just barely entered the gravity-free zone – where it has the potential to start advancing a lot, with much more fluidity.
And that translates into much higher prices.
Why Gold Will Reach a Record $2,000 in 2010
Gold has surged 60% in the past 12months and it’s not letting up. The “yellow metal” is continuing that scorching surge into the last part of the year, establishing new highs on a near-daily basis. In fact, gold established yet another record price yesterday (Wednesday) when it peaked at $1,153.40 an ounce on the New York Mercantile Exchange (NYMEX).
<br And the records are going to keep on coming.
With the U.S. dollar in a freefall and global gold demand rising, analysts say the precious metal will likely continue its bullish trend through at least the first half of 2010. It could rise as high as $2,000 an ounce, which would represent a 73% gain from current record levels.
<br And the records are going to keep on coming.
With the U.S. dollar in a freefall and global gold demand rising, analysts say the precious metal will likely continue its bullish trend through at least the first half of 2010. It could rise as high as $2,000 an ounce, which would represent a 73% gain from current record levels.
Warning: You May Not be Making as Much on Gold as You Think
Millions of investors who bought gold in the last 12 months are undoubtedly very happy at the moment - considering that the yellow metal has risen 60% since last November to a recent close of $1,138.60 an ounce on Monday.
But chances are good that many won't be smiling when they discover just what the taxman has planned for their gains.
Unbeknownst to most investors, gold is considered a collectible not a capital asset. In plain English, this means that despite the fact that many people believe they are investing in gold, the Internal Revenue Service (IRS) believes that they are collecting it.