As you can see in the table below, gold is the star of the year 2010 with annual increases in the tenth print respectively. World Gold prices during the past year sped up almost 30% and thus surpass the increase experienced by the U.S. stock market, [url=http://fb.me/2PPE0M9qO]finance for dummies[/url] crude oil and the u.s. dollar.Now the following questions would arise: "If gold can forward this glorious achievement in 2011, and how much is it to be achieved?"
How High Can You Go?
"The U.S. turned 234 years old yesterday, and yet over half of the nation's money upply was created since Helicopter Ben took over the flight controls four years ago. No wonder gold is in a full fledged bull market. "
-David A. Rosenberg, Chief Economist Strategist, Gluskin Sheff & & Associates Inc.-
Let us first of all look at the printed prosentual annual increase since 2002.
Year% Increase finance for dummies
Strengthening of the average from 2002 to 2010 was 20.2%. Based on that data, we can make some estimations regarding the target price of gold in the future.
From the closing price in the U.S. $1, 421.60/toz on late last year, the price can run into:
US $1, 708.75/toz in gold increased by increases in the average during the last sedasawarsa;
US $1, 842.40/toz if gold rises as much as last year;
US $1, 875.10/toz had gold strengthened by 31.9%, which was the largest increase since 2002.
It can be said that a reasonable target price of gold is set between US $ 1,700/toz and US $ 1,900/toz for this year. But it surely won't happen without a correction though.
In each year, except in 2002 and 2006, the price of gold fell beneath the closing price from the previous year. And ... in every year except one, namely the lowest price reached by 2008, most late in the month of May.
In other words, if you have plans to buy gold, but not yet put into practice because the gold is still considered too expensive, maybe in the near future you will obtain a better entry point. So prepare Your strategy from now on, so that you can take advantage of the good at the right time!
Monetary easing continued to support gold finance for dummies
The truth is that inflation is already out of control, and the Fed is on the run. It cannot stop the U.S. economy from sliding into the second dip, because zero interest rates do not generate the real savings required for economic regeneration. The Fed cannot stop the banks going bust, because enough of them are bust already to bring down the others; but it can delay recognition of the fact by pressing the button marked "Print", and keeping it pressed for as long as it takes. And that is what will surely happen. "
-Alasdair Macleod, 08 December 2010-
During the last two years, the U.S. Federal Reserve, the European Union (EU), and central banks in Japan, China and many other countries attempting to spark their economies by increasing their spend and print a lot of money. As a result, billions of dollars have been injected into the global financial system.
Actually this is really scary. Why is this so? Because every 18 days alone, the United States Government publishes the same debt in value with the production of gold over the past year. And each year, the US borrowed money which amounted to a third of all gold ever mined.
So even though gold has strengthened significantly, finance for dummies the U.S. money supply or the circulation of money in the United States has been rising much. Mr. Dylan Grice, a strategist at SG Securities in London, calculated that the value of gold bullion owned by the u.s. Government in a place like Fort Knox only enough to support 15% of the U.S. monetary base.
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