The Forecast of Gold Prices

Gold: A Pricey Metal During Tough Economic Times

In recent history, gold has become increasingly valuable whenever the dollar’s value plummets. This was ever present during the 70s, when gold first reached $500. After a time of economic prosperity in the 90s, gold reached nearly $1,500 per ounce by the end of 2010. Investors tend to flock to the metal as a sense of stability during these tough economic times.

Forecast of Gold Prices

Image Courtesy of Flickr via Mike G.K.

So What Does the Near Future Hold?

Experts say that gold will reach historic heights over the next few years. By the end of the year, some investors indicate that the precious metal could reach up to $1,800 before the end of 2012. According to experts, this would represent a 15 percent increase and the most since 2010.

An Aggressive Market for Investors

Since the dollar is in the toilet, count on more investors old and new to flock to gold. Historic trends have shown this to be true. In this era, average investors have the ability to do more research than ever before via the internet, leading to an influx of investors. The market will be driven by these investors, who purchase gold from banks in the official sector, jewelry collection and trade, industrial fields and private industry.

If the current market is any indication, gold won’t receive a significant downturn any time soon. Dollar values have plummeted, and the nation has an enormous debt to be paid, while numerous people are jobless. Gold will continue as a staple for investors that want a sense of stability during the economic crisis. If past trends remain true, when the economy is uncertain, the value of gold and increase in the value of gold is as close to certain as it gets.