, IncThe price of gold today rose in early morning trading the dollar strengthened and pared gains made by gold investors. By the late afternoon, however, gold prices had started top rise again, and overseas trading began based on a gold market spot price of $1137. This is a $8.70 gain for the day, and gold is up 38% in the last 365 days.
The price of gold today is exponentially higher than that of 2001, when stocks, bonds, and real estate ruled as kings. Gold was at a paltry $252 per ounce back then, although some investors foresaw higher gold prices in the near future. No investment moves in a straight line, and gold was at a 25-year low.
Our government’s weighty debt, combined with the printing presses that are going full steam ahead, has aided gold prices since 2001 and the yellow metal has climbed over 400% in the last nine years. Many economists believe that 2010 ill be a break away year for precious metals because the dollar’s decline against other major currencies is expected to continue.
In addition to he devaluation of the US dollar, the general sad state of our financial markets is another reason that gold prices could rise in 2010. Some real estate markets have hinted at signs of life, but the long-term effects of our current recession have not yet been felt in the real estate market. Once government rebates expire and borrowers are forced to use their mortgage payment money for groceries due to a lack of jobs, we could see another wave of the mortgage crisis from sea to shining sea. Just as the undertow beneath glassy waters can be treacherous, don’t let the presently calm state of our economy lull you into thinking that we are out of dangerous financial waters. Stay up-to-date with the current financial crisis by reading our 2010 Insider’s Guide to Gold Investing below.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
