Are you watching the gold prices climb?
The price almost kissed $1100 per ounce this week. That’s amazing. Look at the upper corner of Kitco’s 10 year chart. The low in the last 10 years was $255.30 in 2000/2001. Now, in 2009, it will likely surpass $1100.
Some pundits claim that the market has been artificially held back and that the rate should already be much higher. Others claim the price will soon be over $2000 per ounce.
Are either of these viewpoints correct? Many variables determine the markets.
In the meantime, India recently bought 200 tons (yes, TONS) of gold at $1045 per ounce. Their purchase definitely impacted the gold market. Interestingly, they bought the gold with US dollars weakening the dollar’s position in the world markets while building their gold reserves.
What does this mean to our day-to-day lives?
Historically, when the economy declines, gold prices increase dramatically. Well, just look at the number of people losing their jobs, the foreclosures in the housing markets and the decrease in spending. The economy certainly declined.
The question remains how far will gold go up?
Certainly, people propose many opinions on the price of gold and on the economy, but the future variables remain unknown.