- 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
- Why the Gold Bubble Will Peak at $2,000 in 2010
- The Five Reasons Gold Will Hit $5,000
- Don't Miss Out on the Looming Gold Bubble
- Why Gold Will Reach a Record $2,000 in 2010
- Warning: You May Not be Making as Much on Gold as You Think
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.
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.
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...
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.
<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.
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.