Gold Prices at $5,000?
Posted on January 11, 2010 by John Trevors for Luckyroom.com
If the global pension and hedge funds turn 5% of their assets in gold, then the price is not excluded to shoot up to $ 5,000, according to Nick Barisef, President and Board of Bullion Management Group. The price of gold shows no sign of retreat by the entrance of the New Year and everything suggests that it will continue to pick up throughout the year. Several factors, such as purchases of gold by central banks and the decreasing importance of the dollar as global reserve currency will continue to induce a rise in precious metal. If even that global pension and hedge funds turn 5% of their assets in gold, then the price is not excluded to shoot up to $ 5,000, according to Nick Barisef, chairman and managing director of Bullion Management Group.
But what about the case of gold as an investment? There are five predominant scenarios, which are not true, according to analysis of CNNMoney.com. First, inflation is an imminent threat and, therefore, gold offers better protection than shares or bonds. The truth is that the price of gold is growing. However, consumer prices did not rise, at least for now. The massive government measures could certainly trigger inflation. But there is something true in a time when consumer demand for goods and services are so low.
Second, many believe that gold is real and palpable, as opposed to shares, and thus retains its value. The truth is that gold prices began to recede in the fourth century, before the recent record rally. Thirdly, there is a perception that, despite the spectacular rise, gold is still cheap based on historical standards. The truth is that gold is not so cheap. Fourth, after the decline of the dollar, the demand for gold will take off. But even China’s concern about the excessive price rises. Some, consider that changes in the balance of the global economy are those which led the gold is soaring. Fifthly, the “smart money” buys gold and therefore should do the same investors. The truth is that only a very small part of the most successful investors on Wall Street today is investing in gold.
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