Gold Prices Positioned To Escalate To $2,100, Time To Get On The Escalator Now!

July 19, 2011 - PRLog -- Speculators purchased substantial bullish U.S. gold futures and options, based on U.S. government information released late Friday. An increase in prices for gold most likely encouraged funds to increase net-long contracts. The increasing worries over the U.S.'s credit rating supplying the stimulus this week, even though speculation over QE 3 also held gold's price hot. With actual interest rates staying low and also the general opinion outlook for the U.S. currency seeming bleak in the coming quarters, I think there's little to stop gold prices from coming in contact with fresh record highs in the approaching weeks.

In a buy environment shrouded in doubt, gold appears poised to provide an appealing annualized return of 13% over the next 3 years and ought to peak at US$2,100 an ounce in 2014. Go to http://www.silverdollar.cc for more profitable silver and gold tips.

Standard Chartered Bank main investing strategist Steve Brice explained gold remained the bank's preferred and most intriguing long-term commodity. Brice was positive on the prospect for gold. A trigger for this was caused by more potent monetary development in China and India is anticipated to lift extra incomes in the coming years, as a result supplying a rise in need for gold.

Apart from this, growing monetary debt ranges and fears of sustainable monetary recovery in the West have decreased central banking institutions sensitivity to inflation. Gold has generally done nicely all through unfavorable actual rates of interest environments, which are most likely to carry on for a long time in the US and United Kingdom with inflation accelerating and rate of interest hikes to be carried out in the distant future, stated Brice all through a media briefing yesterday about the buy outlook for your second half of 2011. Visit http://silver-dollar-values.net for more profitable silver and gold tips.

Based on history, gold has done nicely all through intervals of unfavorable US actual yields and gold falls when in constructive actual rate of interest environments. We foresee the Fed to hike rates of interest from the 3rd quarter of 2012.

An extra trigger for this bullish take on gold was Asian central banking institutions remaining underweight on gold as well as also the shift from international central banking institutions becoming a resource of net supply of gold to some scenario precisely exactly where they're growing their gold reserves. For so long as we have been operating, central banking institutions have for ages been net suppliers of gold but we noticed them flip into net purchasers last year.

Last but not least, gold supply is most likely to turn out to be constrained in the close to phrase although buy activity is beginning to pick up substantially. The lead-lag relation amongst elevated buy and elevated output indicates prices will remain substantial for a while.

We remain neutral about the international equity markets, underweight on bonds, neutral on money and overweight on alternative assets like gold and silver. Essential feasible dangers that may have implications about the investment environment consist of the European sovereign danger as well as prolonged downturn in the USA. Analysts stated sentiment had improved because the odds of Greece staying clear of a near-term default elevated with the completing of austerity actions. Go to http://silverdollar.cc for more profitable silver and gold tips.

Although there had been problems over how effective the implementation of those actions might be, analysts stated an extra issue amongst traders might be how the European Central Bank (ECB) would react should the rating businesses downgrade the country's sovereign monetary debt rating to default, because the ECB has formerly stated that it would not allow defaulted monetary debt to turn out to be utilized as collateral in cash marketplace operations. Consequently, a default would most likely bankrupt the nation as well as increase the contagion danger. Today is a superb time to purchase gold and purchase silver for your investment portfolios.

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