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August 4, 2009 – The future of gold investments is looking quite bullish today as the latest market forecasts are predicting that an early economic recovery could spark significantly higher safe haven demand for precious metals. As you may already know, the United States Government has pumped trillions of dollars into this financial system in order to prevent a catastrophic economic collapse, and fortunately this has halted a collapse in the short-term yet only created problems in the long term. According to several market analysts, the future of gold investments may prove to be a lot better than previously forecasted, with spot prices potentially surpassing $1500 per ounce if economic conditions are right. Many of these market analysts have said that once the United States Federal Reserve increases interest rates, we may see the ideal environment for inflation to begin growing at a dangerous rate, which in turn could spark safe haven demand as was last seen during a similar cycle that occurred between 1978 and 1980 when the gold spot price increased more than 800% as a result of growing inflation and lower confidence with dollar-backed assets. Do you think that history could repeat itself in the future of gold investments?

During the midday trading hours, the gold spot price is showing a moderate increase, currently sitting at a two-month high as a result of a floundering United States Dollar Index. Currently the metal is sitting at $963.30 per ounce, jumping up $6.70 for the trading day and also jumping up $69.40 in the last 365 trading days.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info