Friday, July 15, 2011

Gold Investment

Gold price in trading Thursday kept creeping up, even touching its highest level after comments by Federal Reserve chairman Ben Bernake about the certainty of a new stimulus package.

Gold price rose 3.80 dollars to the position of 1589.30 U.S. dollars per ounce. This position is trhe highest record in U.S. dollar value of all time. However, if the calculated inflation, this level is still below the peak price in early 1980. while Gold price today buy: $1,586 sell $1,582

In the midst of market uncertainty, investors buy up gold and silver because it is considered to have a stable value. Silver for September delivery rose 54.3 cents to 38.694 U.S. dollars per ounce. Investors also bought these precious metals because of concerns about euro zone debt crisis and the negotiations in Washington concerning the United States Government loans limit.

Reasons for Gold Investment today

Gold is still considered the best place for investment. In the midst of economic conditions that still covered the uncertainty, gold is still capable of yielding investments of up to 13% in the last 3 years. International gold prices are believed to penetrate the level of U.S. $ 2,100 per ounce in 2014.

Chief Investment Strategist Standard Chartered Bank, Steve Brice said that gold is still a favorite investment in the bank and is the most attractive commodity for the long term. He saw the gold outlook still 'bullish'.

One reason for the bright outlook for gold is related to stronger economic growth in China and India, thereby increasing revenues within the next few years, which in turn boosted demand for gold.

In addition, increased levels of debt and concerns about sustainable economic recovery in the countries of Europe have reduced the sensitivity of banks to inflation. Gold typically remains good on the environment of negative real interest rates.

Gold price history is still performing well during periods of negative U.S. real yields and gold fell when real interest rates in positive periods.

Another reason for the rise in gold prices is the attitude of the Central Bank in Asia are increasingly like the gold and the transition from the World Central Bank which are the source of gold nett supply into a situation where they increase its gold reserves (nett buyers). Central bank became nett buyers in the gold market, which means raising the demand.

Finally, the gold supply will likely be retained in short-term despite the investments activity started to increase.

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