Gold’s further bull market predition

In July, the price of gold fell by 5 percent, trading as low as $ 1156/oz 28 July. This price decline in July is the first monthly decline since March, and Gold has fallen 6.5 percent from the June 21 record of $ 1,266.50. Holdings in the SPDR Gold Trust (GLD), the largest gold trading market, fell 1.5 percent last week, heading for the biggest weekly decline since April 2009. During this liquidation may constitute a change in mood of some investors, there is little evidence of a panic sell-off or a major switch from the yellow metal.

Suddenly, just because the price of gold has itself fallen from their historic highs, the bears come out of hibernation. And the number of emails I’ve received in the last week has been amazing. These bears send their message advised me that the price of the yellow metal to fall to $ 1100 and then to $ 900/oz. While I thank these readers for their opinions, I can not agree with them, and frankly, I think it takes a very bold individual, the price of gold will beat drop to $ 900/oz!

These bears were the same people who did not believe that gold cross the $ 1000/oz Never mind the $ 1200/oz. And that this current gold’s market is driven mainly by thosespeculators clear proof that they do not understand what is going on in this market place. Then there are those so-called “experts” that the rise in the price of gold attribute to ‘inflation fears. ” What they talk about inflation? With flat for contracting GDP growth in most industrialized countries, if any, at the moment we are in a hard situation. However, it is still be some time before we see it. And then there are those “students” of the economy who do not see gold as a store of value, despite the fact that has increased since 2001 in the “value” between 250% and 400% no matter what part of the world you live in. And then there are those commentators who explain again and again, according to the gold experts that gold is a useless investment because they do not pay any interest.

According to our calculations of the gold’s investment market, if you invested in fixed income such as saving bonds, and you were lucky and were able to say, 6% per year increase on a base it would double to 15 years your money according to the gold information. My math tells me that even though interest rates are charged not gold, I would end up better off than investing in gold bonds. At the moment, the returns for 10 years UK gilts pay 3.32%. Australian paper 10 years will pay 5.2%, Switzerland 1.48%, 2.91% African American, Germany and France 2.66% 2.95%. Of course there are government bonds, which more than 5% per annum to be paid, as the Greek bonds 10 years, currently 10.31%, but then you have the option to default. I can not see the gold price goes to zero.