Gold Price Going Once, Going Twice, Gone - Gold Pressing Slowly But Surely Up To $2,500

June 18, 2011 - PRLog -- Gold closed up $10.80 at $1,541.00 Friday, and silver was up $.31 to close at $36.00. Central banking institutions that ended up net sellers of gold 10 years ago are buying the valuable metal to reduce their reliance on the US dollar as a reserve currency, pointing to demand that might very nicely extend a record rally in prices.

While developing nations improve purchases, gold may attain $2,000 an ounce this year, compared to having a record price this year of $1,565.70, stated Robert McEwen, the chief executive professional of supplier US Gold Corp. Visit http://silver-dollar-values.com for more profitable silver and gold tips.

Euro Pacific Capital's Michael Pento, who correctly predicted gold's highs for the previous two years, predicted a 2011 high of $1,600. Prices reached a record 14 times this month on demand from traders searching for an choice to the dollar following the cash slumped towards the lowest since 2009, US debt widened, and also the Federal Reserve gave a sign on April 27 that borrowing expenditures will remain close to zero % for a longer period.

The financial climate in China, the best foreign holder of US Treasuries, elevated 9.7% inside the first quarter. China is in the marketplace to have a lot more gold than America, and also Russia is aspiring towards the precise exact same objective. Go to http://silver-dollar-values.net for more profitable silver and gold tips.

Anytime you have debt, you don't have plenty of versatility. China desires to display that its currency has a lot more backing than the US. Last year, central banks grew to turn out to be net purchasers for your first time in 20 years, adding 87 tonnes in official-sector purchases by nations like Bolivia, Sri Lanka and Mauritius, according to the World Gold Council info.

China, with a lot much more than $3 trillion in foreign-currency reserves, plans to arrange new funds to invest cash on precious metals, Century Weekly revealed recently.

Russia purchased 8 tonnes of gold inside the first quarter. China, which has just 1.6% of its reserves in gold, may invest a lot more than $1 trillion in gold bullion, Pento stated. "China wants to be an international player, and they need to own more gold than they currently have." Visit http://silver-dollar-values.com for more profitable silver and gold tips.

The US Treasury Department reports the government could probably attain its debt ceiling of $14.3 trillion anytime mid-May and run out of options for avoiding default by early July. To stay away of default, the federal government has to increase the debt ceiling much more than 2 trillion dollars! The Fed has kept its benchmark rate in between zero % and 0.25% since December 2008 to assist to stimulate the economic climate, sending the dollar down 11% in opposition to a basket of six primary currencies all through the previous year.

Until lastly monetary policy modifications, you're going to carry on to observe 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. Following hearing these words from Ben Bernanke, you'll hopefully heed my guidance and buy gold and buy silver now while the prices are nonetheless relatively inexpensive.

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