Gold Sales to Increase Worth of Metal?

This week’s update on gold pricing may predict rising futures for the metal.

Reuters UK reported that due to hardships being experienced by the U.S. banking industry, gold might be headed for a run.

This week, oil fell below $10 a barrel for 7 month lows, Lehman Bros filed for bankruptcy protection, and Merrill Lynch was acquired by Bank of America.   The weaker dollar could trigger a rise in demand for commodities, like gold.

Gold jumped 2.5% to over $784 an ounce following last Thursday’s 11-month low of $736.  Bullion, on the other hand, was trading at $775.60 an ounce.

Gold is often considered a safe haven during financial crises, and many economists are predicting that it is not performing at its peak ability yet.  Gold’s futures will also be determined by watching if the euro reacts strongly or weakly to the dollar.

Many economists are also questioning what will happen when much of the supply of gold is purchased...

Take advantage of rising gold prices and sell your gold at Cash4Gold.com today!  Visit www.cash4gold.com for more information….

GOLD INVESTMENT NOTES

No one knows exactly how gold will be priced in the future, but this blog made some interesting points.  In 1800, the price of gold was just below $20 per troy ounce.  By 2008, gold has reached almost $1,000 per ounce, just not quite yet.

In total, this is less than a 2% annualized average rate of return.  The all time peak for gold was in 1980 – the price equivalent, when adjusted for inflation – is $2,000 per ounce in today’s dollars.  $2,000 an ounce is a far cry from the $800 an ounce where gold is priced right now.

Take note that gold hovered around $20 an ounce for about 130 years, with the past 78 years showing safe, but not the highest rates that are paid out with other investments.

Historically, gold is always suggested as a hedge against inflation, due to the fact that it does well when people lose confidence in hard currency.

With decline of dollar and the possible decline of the euro, gold again may be that hedge against inflation.  To learn more about the prices we pay for gold, visit www.cash4gold.com and consider selling your gold today.

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