Gold Price Hits Record $1500 Per Ounce on Europe, US Debt Woes

The price for one ounce of gold bullion hit a new all-time high today of $1500. The consensus amongst industry experts is that gold has much farther to go.
By: The Gold Times
April 19, 2011 - PRLog -- Gold bugs have new reason to cheer today as the gold price eclipsed $1,500 per ounce after the S&P issued a negative outlook on US debt. The white-hot yellow metal is up 7% since the beginning of the year and 30% since last April.

The consensus amongst industry experts is that gold has much farther to go. In 1980, gold hit a then-record $873 per ounce. According to the US Labor Department's inflation calculator, the 1980 high would be $2,280 in today's dollars.

Billionaire investor Jim Rogers, in a March interview with CNBC's Maria Bartolomeo, explained: "I certainly think gold will go to a couple thousand dollars over the next decade." Peter Schiff of Euro Pacific Capital is even more bullish. Also on CNBC, Schiff remarked that a gold price of $5,000 was a distinct possibility in the mid-term. "As long as we're doing quantitative easing, the dollar is going to lose value . . . I think that gold is going to increase its rate of ascent in the next ten years versus the previous ten."

The bull market in gold began in 2001 when gold traded at $260 per ounce. It's less-heralded counterpart - silver - can boast even larger gains. Trading as low as $4 per ounce in 2001, silver eclipsed $43 per ounce last week and is up an incredible 43% since January. Despite 10x growth in the past ten years, silver has yet to reach its nominal all-time high of $50 in 1980.

Not everyone is bullish, however. Concerns about a gold bubble increase with the eclipse of every new milestone. Trent Henkaline, CEO of GoldShark.com, a cost comparison website for gold and silver bullion dealers, believes those fears are unwarranted. "For there to be a bubble, a very large percentage of the population would need to be aware of the market and anxious to take part in it. We're just not seeing that yet. This isn't like the housing bubble, where suburbanites were flipping houses on the weekends. Estimates suggest that around 1% of the populus owns physical bullion."

Whether bullish or bearish, one fact is certain: right now, the market is as good as gold.
End
Source:The Gold Times
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Tags:Gold Price, Gold, Silver, Silver Price, 1500, Precious Metals
Industry:Financial, Banking
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