Gold Prices

There is nothing on the horizon to make me think gold will turn down except some short term profit taking which will happen, probably soon. It will not last long, though, and will continue up if market forces are allowed to effect gold without intervention.

Price rise factors:

1. Two of the largest markets in the U.S. are in deep trouble and still sinking, housing and auto sales. There is no sign of a change here and there effects have yet to hit the job market, but they will.

2. The American dollar is under attack from many directions and is not the investment tool today like it has been in the past. It had been buoyed by the amazing economic engine called the US economy. NAFTA, sub-prime lending, energy cost, consumer debit and lack of confidence have eroded it to the point that many nations invested heavily in US dollars would dump their investments in them if not fearing destroying their own holdings value in the process.

3. Energy costs are a large part of the cost of an ounce of gold or most any metal for that matter. There is no end in sight for the rise in energy costs and metals will have to follow.

4. Demand. With emerging Asian nations demanding a higher standard of living, the consumption of energy and consumer product like jewelry will force prices higher.

5. Safe haven investing. In turbulent times, gold is where wealth hides. The stock market cannot continue to hold against the pressures mentioned above. It is only a matter of time before is gives and those dollars will head for the high ground. Gold will feel that effect, too.

Price drop factors:

1. I have believed that the world banks have manipulated gold prices for years. Their belief is that a stable gold price is a strong defense against inflation. They have played games amongst each other for years. Gold starts up and someone puts a large quantity of gold on the market effecting supply and demand. Another bank buys it up and then loans it back to the selling bank. it has worked well for years, but cannot resist the forces on gold now.

2. Nothing else.

Guess where I am putting some of my money.

Jim

why?when their is economic trouble gold went up?

I think it will have a lot of self-induced momentum at this point. The price makes headlines, people ask why it's so high, and are told "weak dollar, economy, etc." So they think it's going to go higher, and demand pushes it up. Eventually, the momentum-demand bump will back off.

So, my prediction is it will peak, and then back off about 15 - 20% within 1 - 2 years. The tough part is guessing the peak. I'll guess it will be 10 - 30% higher than now.

Thanks for the info.

Maybe others already accepted that gold is a rare metal and readily acceptable as payment,its rare and most of them want it,pioneer or people in the past accepted and introduce this way.as maybe metals and coins with gold is a presentation of wealth.

Lead and gold have same weight others say it differs only with one electron,others say put lead on high electricity to convert to gold.

In the past I saw in the news that japan is extracting precious metal from the residue of burnt rubbish,just adding some chemical on it.others say lead in computer since electricity past on it some lead change composition and turn to other metal.

Up and down of dollar and gold.What happen inbetween when dollar is in extreme low and gold near extreme high?is their chances that this scenario will happen?for a meager budget, common person, like me? how do I prepare?

I think you guys are way off base. Gold will be at $900 within the next week. Then will come some profit taking, then back up. If you look at all the indicators, Gold looks to be at $1200 by the end of 2008 and silver at $20.00.

Two of the main things that will be driving the price of gold is oil and the falling dollar. Oil will be only going up since we are at global peak production yet demand is still increasing globally. This bodes well for precious metals. We will see some wild swings up and down but the slope will be going up. The second thing driving it is the crashing dollar. If, Ben Bernacke lowers the rates again, as is expected, then watch the dollar go further down and PM's go way up. Sadly, there isn't much we can do about the falling dollar at this point short of more wars. Bush and his policies have help the decline of the dollar and it is too late for him or Ben to do anything about it. All you can do is sit back and watch the dollar index continue it's decline.

But a falling dollar index makes the price of gold go up. It's not that gold value is going up, but rather that it just takes more dollars to buy everything, including gold. Tangible items will go up in relation to the dollar. Especially Oil and Food. I hope many of you are stockpiling tangibles because things are going to get quite hairy for a while.

I think we will see $900 very soon maybe $1200 by the end of 2008. What do yuo think?

What is happening here is the Dollar continues to loose its value as gold will increase to off set that lost. I predict that gold will reach $1,100 by midyear at least. As long as there is greed for the industry to profit from oil unduly, oil will at least double to $200 plus a barrel. Besides, the days of the oil industry are numbered and they know it! Consequently, what is happening in the U.S. is a form of cannibalism thus compelling citizens to deplete their savings just to meet their expenses; So much for luxury! The Oil industry profits are astronomical and at the expense of others. As for Silver will probably reach $40. this year.