Whether a bear or a bull on gold, take a look at the facts Mr. Degraaf includes in his article: One more Nail in the Coffin of the Gold Bears
Here are some highlights:
- Central Banks of most countries are printing their country’s money
- Prominent hedge fund moves gold position from “paper to physical”
- Central Banks became buyers rather than sellers of gold
- “Easy to find” gold has already been found
- Bureaucracy makes adding a new gold mine expensive and lengthy – up to 10 years
- Demands for investment gold increased
- 2.4 billion new people in the world since the last gold rush in the early 1980s
- Many of those new people reside in India and China where they desire to own gold
He includes other notes of interest as well. Plus, he looks at the performance of the dollar and the implications of the Congressional over-spending. In response to concerns of the Dow falling, he compares the historical performance of the S&P 500 to gold in good times and in downturns.
So, do you think gold will increase in 2010?
Well, gold prices are currently moving upward.
As of late afternoon, Eastern time, the New York gold market hovers around $1136. Considering it began the day at $1122 and went over $1138, the afternoon price settled into the $1134 to $1136 range.
Is this the start of an upward trend?
Re-read Mr. Degraaf’s points and think about it.