Price of Gold in 2010 – Where Is It Going?
Everybody is wandering where the price of gold is going in 2010.
After bold predictions that it’s going to reach $2000 and higher, it actually is languishing around $1200 for a considerable time. Amazing, how some market analysts can get it wrong! Anyone who wants to buy or sell gold for profit is waiting on the sidelines. The worst of them would have to be Weiss with his predictions, early last year that by the beginning of 2010, the price of gold will pass $2000. Pure speculation or a total lack of market knowledge? You be the judge… Investors, national reserves, speculators and banks are not sure where to go from here. Although there are no political “dark clouds” necessitating a run on gold, this can change at anytime, with the Middle East politics as dangerous as ever, and banks hoarding gold reserves.
Price of Gold in 2010
Today, COMEX gold for August delivery ended down $13.20 to $1,195.10 an ounce. Way lower than the forecast. Economists are not the only one who gets it wrong; politicians trying to run their countries’ economies notoriously overvalue the gold securities and their treasuries are then left to pick up the pieces. It’s going to be interesting to see how China’s National bank will steer its monetary policy now, when price of gold seems to be stabilised for the foreseeable future.
However, don’t dismiss gold entirely. Silver and platinum are even more exposed to the market speculators and it’s hard to pick up the underlaying trend. Investing in gold, as safe as it is, will not deliver the expected returns for a while; possible, till the US dollar debacle is not solved. The world is on a lookout for a reserve currency, and aided by the IMF’s optimism it’ll find one sooner or later. Only then, will gold attain some realistic floor value and a bounce will become a possibility.
