Predictions Of Gold Price Trend In 2011

There are no sources from which we can predict what the gold price trend 2011 will be

. By looking at the historical data an investor can get an idea regarding the price. To know the price estimate of gold in 2011, an investor has to look for the highest gold rate that was recorded in the past. The peak price of gold can reach $5000 per ounce as per the analysts as the current economic output is many times greater than 30 years ago. As today's market is based on trader's emotions and mass psychology many would not believe that the gold price may increase to $5000. Because of this normally the predictions made by different analysts will be different.

A common question may be bubbling in many minds about who are buying gold and driving their prices up. The market traders today are showing a lot of interest in buying gold. But a lot of ordinary folks are also buying gold. This is because they can buy and sell gold as a contract in their trading platform. The government also reserves gold for dealing with other countries as a better form of payment. Banks may also accumulate gold in their reserves. This selling and buying pressure may raise the gold price trend 2011 or crash it.

Many people invest in gold as they lose confidence in paper currency. There are many causes for this volatile nature of paper currency. They may be political unrest, economic depression and rising inflation. There are many other factors which affects gold rate. Due to the increasing political and economic problems all over the world, many would always prefer to have a form of currency that has high value. The bottom line is the gold price trend 2011 is unpredictable.

How many times do we see the top brokers and financial analysts come out and predict the price of gold and silver, only to find that it was too early or too late of a call. What they do not realise is that all investing is based on fear and greed.

Fear are those that are currently in the market and want to get out before they start to lose money.

Greed is those that are out of the market but feel they are missing out on the action. So they are looking day and night for a good opportunity to be in.

At the moment gold and silver are very good investment to be in the longer term. Especially if you are betting that the US economy is only going to worsen. Time will tell, but the Gold Price Trend in 2011 will be closely tuned into that the fear and greed factors in the next 12 months.

by: Gen Wright

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