The Future Of Gold

It is a sad reality that gold prospers when money systems don't. But attitudes to financial security will change and dramatically so, with 2009 seeing government desperate to shore up confidence. Unless financial values and institutions are structurally changed to repair these institutions, there will be severe social consequences.

Until that time, we will see a widening and a deepening of markets that do not rely on human endeavor for future financial security. Among those will be silver, Gold Coins and Allocated Gold, markets which carry no promise, nor nationality, but are at their best when the world is at its darkest. The future of gold and silver, gold at $2,000/oz by the end of the year and $10,000/oz by 2012 and silver at $30/oz by the end of the year and $130/oz by 2012.

The best investment in the world today is gold which is due to the fact that it isn't considered to be a liability. The fact, that gold isn't considered to be a liability will increase gold prices during 2009. In March 2008, gold prices increased in price to a record high of $1,033. There were decreases in price over 2008, but by the end of the year gold was at a positive 5.4% gain for the year. Therefore gold was one of the best investments during 2008.

As the feds dole out corporate welfare, gold will continue to appreciate. Today there is a new investment phenomenon that gold experts call "gold's doubling effect," This phenomenon provides investors with 2x gold's daily gains. What this means is that an investor will make $2 every time gold goes up $1. Although there might be a short time period where gold prices might be a little lower at the end of 2009 gold prices are expected to break new records.

Experts give gold future predictions as high as $1,300 during 2009, which would be a profit of over 50% from current levels. During 2009 gold prices will be supported more strongly by supply/demand fundamentals than in previous years. It is possible that the gold market will experience three or four price increases during 2009. Experts like Jim Rogers and Marv Faber say they will still purchase gold and commodities no matter what happens with the economy because these are the best markets to invest in. Marc Faber predicted that the US economy would become like that of Zimbabwe.

Gold mine production worldwide in 2009 is predicted to rise by 20 tons to 30 tons from 2,416 metric tons last year, due to the increased production in mines in Asia, Australia and west Africa. Marc Faber as well as other experts have given warning of a Zimbabwe like Hyperinflation due to a rush for gold investment. In India and North America there is currently large demand for gold and silver. Once gold has increased above the 2008 high, experts say that there will be some real action in the market. Gold price in the future looks good for investors.