Daily News

Seeing a positive gold investment forecast for 2010 is a strong possibility, according to some analysts. With continued success in gold mining as well as new finds, 2009 has proven to be a successful year for investors and extended that confidence into next year as well.

The good news is that 2010 is poised to continue many of the successes that were enjoyed in the previous year, creating expectations that gold prices will continue to rise. Many analysts are maintaining that gold investment forecasts that indicate the metal will outperform other investment options both for 2010 and beyond as demand significantly exceeds supply.

While the nightly news has trumpeted gold’s assault on the $1,000 per ounce barrier, its long-term growth has been just as impressive, with a growth rate of over 400% in the past decade. While gold tends to react inversely to the stock market, both commodities ended 2009 on a strong note, spurred by the weakness of the US dollar and the global economic crisis. Gold has been especially consistent, with growth rate increases of 39%, and 11% through the past three years.

The uncertain economy is creating its own situations that help to promote a positive gold investment forecast. Economic instability has historically brought investors to gold, partially due to its strength next to a weak dollar and partially because it is a high value commodity that is also highly liquid. Investors see gold as an asset that increases in value during tough times, yet can be used as an alternate currency in the event of economic emergency.

While world economic conditions helped to propel gold back to the forefront as a valuable investment commodity, conditions persist that offer a positive gold investment forecast for the future. Limited supply, high demand and economic instability will make gold a valuable asset in 2010 and beyond. 

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info