Why investors want to buy gold? Here’s why. Gold price’s prognosis estimate that in the next 6 months, it will reach $1200. You may say, it’s a bit extreme, because the majority of experts puts the figure at $980 – 1100 per ounce.
But, Standard Bank estimates the price of gold to reach $1000 in just 1 month. Another bank – USB, says it may reach $1150 in the next 3 months, from today’s quote at $952.90.
Price of gold for the first time are moving separately from the broad index. There’s so much uncertainty on the market, particularly with many currencies devaluing fast, that gold is valued much more, and its price grows even with the strengthening dollar. Investors are obviously very sensitive to any risk, and buying gold isn’t one. At the same time, pumping billions of dollars into the world economy threatens to increase the inflationary pressure. Thus having gold in your portfolio will reduce the dangers of your investment’s devaluation.
On top of that, the recent announcement by the Federal Reserve, of its intention to spend $300 billion to buy out its own notes, only adds to the market’s worries. Another reason to buy gold is the continuing fall in the prices of metals, and a sell-out of cooper and aluminium stocks. After a rapid fall of 5%, dealers predict further corrections – downward. Yes, buy gold, when you can still afford it!
