Gold Price Going Once, Going Twice, Gone - Gold Pushing Steadily Up To $2,500

April 30, 2011 - PRLog -- Central banks that had been net sellers of gold ten years ago are purchasing the precious metal to decrease their reliance on the US dollar as a reserve currency, signaling demand that may very well extend a record rally in costs.

While developing countries increase purchases, gold might reach $2,000 an ounce this year, compared having a record of $1,538.80 on Thursday in New York, said Robert McEwen, the chief executive official of supplier US Gold Corp. Visit http://silverdollar.cc for more silver and gold tips.

Euro Pacific Capital's Michael Pento, who properly predicted gold's highs for the past two years, forecast a 2011 high of $1,600. Costs reached a record 14 times this month on demand from investors looking for an option to the dollar after the money slumped to the lowest since 2009, US debt widened, and also the Federal Reserve gave a sign on April 27 that borrowing expenses will stay near zero percent for a longer period.

The economic climate in China, the greatest foreign holder of US Treasuries, increased 9.7% within the initial quarter. China is in the market to have much more gold than America, and also Russia is aspiring to the exact same goal. Visit http://silverdollar.cc for more silver and gold tips.

Whenever you have debt, you do not have lots of flexibility. China desires to show its currency has much more backing than the US. In 2010, central banks grew to become net buyers for the first time in 20 years, adding 87 tonnes in official-sector purchases by countries such as Bolivia, Sri Lanka and Mauritius, based on World Gold Council information.

China, with much more than $3 trillion in foreign-currency stores, plans to arrange new funds to spend money on precious metals, Century Weekly reported this week.

Russia bought 8 tonnes of gold within the first quarter. China, which has just 1.6% of its reserves in gold, might invest much more than $1 trillion in bullion , Pento stated. "China wants to be an international player , and they need to own more gold than they currently have."

The US Treasury Department estimates the government could possibly reach its debt ceiling of $14.3 trillion anytime mid-May and run out of choices for avoiding default by early July. To steer clear of default, the federal government has to raise the debt ceiling more than 2 trillion dollars! The Fed has held its benchmark rate in between zero percent and 0.25% since December 2008 to help to stimulate the economy, sending the dollar down 11% in opposition to a basket of six main currencies throughout the past year. Visit http://silverdollar.cc for more silver and gold tips.

Until finally monetary policy changes, you are going to continue to see gold going up. "Ultimately the best thing we can do to create strong fundamentals for the dollar in the medium term is first, keep inflation low, which maintains the buying power of the dollar, and second, create a stronger economy," Fed Chairman Ben S. Bernanke stated on April 27. After hearing those words from Ben Bernanke, you will hopefully heed my guidance and purchase gold and purchase silver now while the prices are still comparatively inexpensive.

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