Observe Why Gold Prices Can Almost Definitely Hit $5,000 Or More, And Perhaps Higher Quite Soon!

March 27, 2011 - PRLog -- Gold prices and silver prices ought to benefit significantly from the news of the questionable values of US dollars. Look for huge 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 already know about the fundamental reasons for owning gold and silver for currency protection, inflation hedge, store of value, calamity insurance, many of which in turn are becoming clichés even in mainstream articles. Toss in the supply and demand imbalance, and you've got the basic arguments for why one should keep gold for the foreseen future. Visit http://silver-dollar-values.com for more silver and gold tips.

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

But there is an additional driver of the cost that escapes many gold watchers and definitely the mainstream media. And I am convinced that as soon as this sleeping giant awakens, it could fire up the gold market like absolutely nothing we have ever seen. http://silver-dollar-values.com has all the details for a precious metals investing decision.

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

Worldwide 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 within the U.S. of $14.7 trillion.

Now here is the enjoyable part. Let’s say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to improve their allocation to the gold market. If they doubled their direct 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 acquisitions.

How much is that? The investments of GLD total $55.2 billion, so this amount of cash is 1.7 times larger than the largest gold ETF. SLV, the most significant silver ETF, has net assets of $9.3 billion, a mere one-tenth of that additional allocation.

The marketplace cap of the entire sector of gold stocks (producers only) is about $234 billion. The gold industry 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. Visit http://silver-dollar-values.com for more silver and gold tips.

However what if currency issues spiral out of control? What if bonds decline and die? Imagine if real estate takes ten years to recover? What if rising cost of living becomes a barking dog like it has each and every other time in history when governments have watered down their currency to this degree? If these funds allocate just 5% of their assets to gold - which would amount to $1.5 trillion - it would certainly overwhelm the system as well as rocket prices skyward.

And also let’s not forget about that this is only one class of establishment. Insurance companies have about $18.7 trillion in assets. Hedge funds handle approximately $1.7 trillion. Sovereign wealth funds control $3.8 trillion. Then there are mutual funds, ETFs, private equity funds, as well as private wealth funds. Toss in millions of retail investors worldwide like you and me and we are looking at $100 trillion of possible new invested funds.

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

Because once fund managers get into the gold marketplace in mass, this tiny sector will light on fire with blazing speed.

My guidance is to not just hope you are able to jump in as soon as these players get into the precious metals marketplaces, but to lay claim to your seat throughout the relative calm of this month's level prices. Perhaps now is the time for you also to consider your investment portfolio and buy gold and purchase silver as a safe haven in these times of uncertainty in the political and financial areas. Silver dollar coins make a great investment that you can personally hold and keep safe. http://silver-dollar-values.com has all the details for a precious metals investing decision.

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