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July 30, 2009 – Gold investment predictions have been quite bullish since the beginning of the year as several market analysts believed that safe haven demand for the precious metal would skyrocket amidst a contracting economy that is already in the worst financial crisis we have seen since the Great Depression. Some of the most interesting gold investment predictions that were released forecasted that the spot price could climb above and beyond its all-time record high of $1033 per ounce, potentially hitting $1250 per ounce and even $1500 per ounce if conditions were right. As you may already know, the United States Government has pumped trillions of dollars into our economy in order to prevent a short-term economic collapse, and this has boosted investor’s confidence in dollar-backed assets like stocks and bonds, thus reducing safe haven demand, yet this may simply be a cloud over the reality that we may face within the next few years. According to several market analysts, gold investment predictions may fall short this year, yet once the United States Federal Reserve increases interest rates, we may see an excellent environment for inflation to begin growing at a dangerous rate. For those who don’t know, the last time that our economy faced high inflation was in the late 1970’s when the gold spot price increased more than 800% in just two years. Will this happen again in our current economy?

During the midday trading hours, the gold spot price has rebounded after hitting a two-week low yesterday, and it appears that many American investors are turning to safe haven markets once again. The current spot price is trading at $934.60 per ounce, increasing $5.20 for the day and also increasing $29.20 in the last year.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info