Sure, plans to return to the gold standard may still seem a bit extreme. (Sorry Ron Paul and your loyal minions!) Yet if you look at the reason why gold has done so well lately, it seems logical to expect the price of the yellow metal could continue to climb, blow past its current all-time high (not adjusted for inflation) of about $1,923 an ounce and surpass $2,000 in the process.
Gold is hovering around $1,790 right now. The price has risen more than 12% since the beginning of the year and is up 6.5% in the past month alone. Gold's rally first started to pick up steam a few weeks ago, on the back of the European Central Bank's plan to buy up bonds of troubled sovereign nations.
The Federal Reserve followed the ECB's lead and launched QE3 just a week later. Central banks in Japan and England are also in easing mode and with China's economy slowing, it would not be a huge shock if the People's Bank of China were to soon announce its third interest rate cut of the year. ...
The Federal Reserve followed the ECB's lead and launched QE3 just a week later. Central banks in Japan and England are also in easing mode and with China's economy slowing, it would not be a huge shock if the People's Bank of China were to soon announce its third interest rate cut of the year. ...
Add all that up and it's very bullish for gold. Central banks printing money like there's no tomorrow ultimately should lead to lower values for the currencies of countries in easing cycles, as well as inflation. And inflation is gold's best friend.
"I am not a gold bug. But I think gold can go much higher. There is not a number for the price of gold you can give that would shock me," said Ron Carson, founder and CEO of Carson Wealth Management Group in Omaha. "If the Fed and other central banks continue to pile on more debt, commodity prices will go through the roof." ...
"I am not a gold bug. But I think gold can go much higher. There is not a number for the price of gold you can give that would shock me," said Ron Carson, founder and CEO of Carson Wealth Management Group in Omaha. "If the Fed and other central banks continue to pile on more debt, commodity prices will go through the roof." ...
A $3,000 target price for gold may sound like a crackpot prediction at first. But many scoffed at gold $750, gold $1,000 and gold $1,500 prognostications not that long ago. Unless the economy suddenly takes a turn for the better, or central banks decide they can't continue to support the financial markets with easing ad infinitum, gold may keep climbing.
More information can be found online at http://www.goldbullionadvisors.com
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