2011 has been a very interesting year for gold investments because it marks the 10 year anniversary of massive increases in value that have been primarily driven by inflation, failing traditional investing markets and an overall weaker United States Dollar. As you may already know, The US base national debt is over $14 trillion, a staggering number poised to continue increasing as the government continues stimulus and quantitative easing measures. All of these negative economic factors are very influential to gold investments because many investors tend to buy gold as a store of wealth when they feel that their dollar-backed investments are no longer safe.
The future of gold investments will be primarily dependent on the strength of the United States economy. If the United States Government continues its current overprinting of US Dollars, this could result in major hyperinflation down the road, which in turn pushes investors away from dollar-backed assets like stocks and bonds. Fortunately for gold investors, gold and the United States Dollar have a very unique inverse relationship. As dollar-backed assets weaken, investors tend to flock to physical possession bars and coins in order to protect their wealth with an asset that historically thrives during inflationary economic environments.
Many expert gold investment analysts believe that the metal’s current $1,550 per ounce spot price could reach anywhere from $1,780 per ounce up to $2,100 per ounce before the end of the year. These are very realistic estimates, especially since gold has already increased in value more than 25% this year alone (2011).
Investors interested in more information can contact Gold-Investment.info directly for helpful assistance and experienced investment direction.
Zachary A. Pew