subject: Is The Price Of Gold Going To Hit 1.500 Dollars An Ounce? [print this page] Rumors say that the price of gold will be pushed over the psychological step of 1.500 dollars an ounce because of the monetary policies tactics used by the central banks. Is this really going to happen?
If we took the time to make a small comparison between what happened in back in 1970s with what is happening today we may see that there are some similarities. During that period the price of the dollars rose from 35 dollars an ounce to 850 dollars an ounce. There are specialists that consider that there is a real connection between the price of gold and the US interest rates.
During rough times the central banks have the tendency to hold as much gold as possible and don't release it on the market, creating a shortage. Demand also rises because the investors who are looking for a safe haven are interested in buying the yellow metal. The natural supply of gold was less than the demand when the economy was not affected by this financial crisis.
Furthermore, the gold mining companies are no longer interested in selling their production to bullion banks. This used to be a common practice until the start of the century but it is not happening anymore. Because of this, a shortfall of 500 tons of gold was created. It has also caused a problem for those that are looking to purchase physical gold and can no longer find it so easily.
Gold is seen as the ultimate safe haven. Those who own gold are hanging to it with dear life and those that don't have are desperate to purchase some. Gold still represents a good investment for the years to come. It is good to own a little gold because it will diversify your portfolio. Investing now while the market is hot is the best thing one can do, so stop thinking about it and start buying.
