What will 2010 hold for the ongoing gold price surge?
This week, the managing director of American Precious Metals Advisors suggested that Gold Prices could reach as much as $1,500 per ounce next year.
He believes that despite the recent correction, the four pillars of gold-price strength remain intact.
- Inflation-fueling U.S. monetary and fiscal policies.
- Central bank reserve diversification with the official sector being a purchaser rather than a supplier of gold.
- Expanding retail and institutional investor participation in the United States, China, and around the world.
- Declining world gold-mine production.
Ted Scott, the director of UK strategy at F&C Investments has also said “The only way that gold can underperform is if the US and other developed economies recover in a conventional way by cutting spending and raising taxes while at the same time embarking on a period of stable economic growth.”
Given the significant challenges ahead, a muted and fragile recovery appears more likely. It will probably take several more years to recover from the credit crunch and alternative assets like gold will remain attractive in such an uncertain environment.
So why not take this opportunity to make a purchase from the Gold Bullion Company?
