Uncover The Key Reason Why Gold Prices Will Most Certainly Hit $5,000 And Possibly Higher Quite Soon

March 20, 2011 - PRLog -- Gold prices and silver prices should benefit greatly from the news of the dubious values of US dollars. Look for large increases in the prices for silver and gold coming soon. This makes silver dollar values look like an excellent investment now. Buy silver! Buy Gold!

You by now know about the fundamental reasons for owning gold and silver for currency protection, inflation hedge, store of value, calamity insurance, many of which are becoming clichés even in popular articles. Throw in the supply and demand imbalance, and you've got the basic arguments for why one should keep gold for the foreseeable future. http://silver-dollar-values.com has all the details for a precious metals investing decision.

Every one of these factors stay very bullish, in spite of gold’s 450% rise over the past decade. No, it is not too late to purchase, particularly if you do not own a meaningful quantity; and yes, I'm convinced the price is headed a lot higher, irrespective of the corrections we'll inevitably see. Each of the previously mentioned catalysts will push gold’s price higher and higher within the years ahead, especially the currency problems.

But there's another driver of the cost that escapes numerous gold watchers and definitely the mainstream media. And I am convinced that as soon as this sleeping giant awakens, it could ignite the gold marketplace like absolutely nothing we have ever seen. http://silver-dollar-values.net has all the details for a precious metals investing decision.


The funds management industry handles the bulk of the world’s wealth. These institutions include insurance companies, hedge funds, mutual funds, sovereign wealth funds, etc. However the elephant in the place is pension funds. They are institutions that offer retirement income for both public as well as private plans.

Global pension assets are projected to be $31.1 trillion. No, that's not a misprint. It is more than twice the dimension of last year’s GDP in the U.S. of $14.7 trillion.

Now here is the enjoyable part. Let’s point out fund managers as a group understand that bonds, equities, and real estate have turned out to be poor or risky investments and so determine to improve their allocation to the gold market. In the event that they doubled their exposure to gold and gold stocks - which would still represent only 0.6% of their total assets - it would amount to $93.3 billion in new purchases. http://silver-dollar-values.com has all the details for a precious metals investing decision.

How much is that? The investments of GLD total $55.2 billion, so this quantity of money is 1.7 times bigger than the biggest gold ETF. SLV, the largest silver ETF, has net property of $9.3 billion, a mere one-tenth of that extra allocation.

The market cap of the entire sector of gold stocks (producers only) is about $234 billion. The gold business might see a 40% increase in new cash to the sector. Its marketplace cap would increase two times if pension institutions allocated just 1.2% of their resources to it.

However what if currency problems spiral out of control? Let's say bonds wither and die? What if real estate takes ten years to recover? What if inflation becomes a barking dog like it has every other time in history when governments have diluted their currency to this level? If these funds set aside just 5% of their resources to gold - which would amount to $1.5 trillion - it would overwhelm the system as well as rocket prices skyward.

And let’s not forget that this is only one class of establishment. Insurance businesses have about $18.7 trillion in assets. Hedge funds manage approximately $1.7 trillion. Sovereign wealth funds manage $3.8 trillion. Then you will find mutual funds, ETFs, private equity funds, and private wealth funds. Throw in millions of retail investors worldwide like you and me and we are looking at $100 trillion of feasible new invested funds.

Sovereign debt risks are not even close to over, the U.S. dollar along with other currencies will lose considerably more value against gold, interest rates will most certainly rise in the years ahead, and inflation is just becoming started. These kinds of forces are in place and building, and if there’s a paradigm shift in how these kinds of managers view gold, look out!

Because as soon as fund managers enter the gold marketplace in mass, this very small sector will catch on fire with blazing speed.

My guidance is to not just hope you are able to jump in once these players enter the precious metals marketplaces, but to lay claim to your seat during the relative tranquility of this month's level prices. Maybe now is the time for you also to think about your investment portfolio and buy gold and purchase silver as a safe haven in these periods of uncertainty in the political and financial areas. Silver dollar coins make an excellent investment that you can personally hold and maintain safe.

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