Silver Dollar Values Prices Will Be Skyrocketing, Kitco.com Predicts Gold To Go Over $3,000

Aug. 18, 2011 - PRLog -- Pedal to the metal: Traders generate gold to one record following another, but some see a bubble. For what's usually a sleepy month, you will find so many clients in the Gold Standard, a New York business that buys jewelry that it feels like Christmas in August. Uncle Ben's Pawn Shop in Cleveland has by no means noticed a rush similar to this.

Introducing the new American gold rush. The price of gold is on an exceptional run, setting a record seemingly each and every other day. Stomach-churning unpredictability in the stock marketplace this month has only created traders covet gold more. Some want it as being a safe investment for turbulent occasions. What concerns some traders is the fact that many others are purchasing merely because the price is increasing plus they wish to make cash quick. In October 2007, it sold for about $740 an ounce. A bit over a year later on, it rose over $1,000 for the first time. This previous March, it started rocketing up. On Wednesday, it traded over $1,793 an ounce, just short of last week's record of $1,801. CLICK HERE to Check out Silver Dollar Values Silver Prices now! http://silverdollar.cc has all of the tips and details for an intelligent precious metals investing choice.

In the mean time, stocks, in spite of increasing sharply in the last two and a half years, are only somewhat greater in price than they had been a 10 years in the past. Ever since hitting a record high in October 2007, the Standard & Poor's 500 index is down 23 percent. In the end, though, gold is precious because we all concur it is. Gold was used around the world as being a currency for thousands of years, and then it gave value to paper money for a couple of hundred more years.

Today, in a time of turmoil, from the credit rating downgrade and argument over raising the debt limit in the U.S. to the expanding financial crisis in Europe to concerns of slow growth across the planet, gold is dazzling traders. Ever since the financial crisis in 2008, central banking institutions around the globe have bought gold as being a hedge against their foreign exchange holdings. Early on this month, South Korea declared it had bought gold for the very first time in more than 10 years. Gold is an powerful hedge in a world where there is an excessive amount of debt and uncertainty.

The very last time gold prices elevated so precipitously was a few years following President Richard Nixon concluded a decades-long fixed connection between the worth of the dollar and the worth of gold. In those times, the price of gold was fixed at about $35 an ounce. Many foreign currencies had been pegged to the dollar. Gold offered the dollar its value, and the dollar provided everything else value. Then the U.S. started running a trade deficit, and dollars piled up overseas. Central banks could receive dollars for gold. But it was a badly kept secret that the U.S. didn't have sufficient gold to cash out each and every dollar in circulation. CLICK HERE to Check out Silver Dollar Values Silver Prices now! http://www.silverdollar.cc has all of the tips and details for an intelligent precious metals investing choice.

To take off a rush, Nixon "closed the gold window," basically saying that assurance in the U.S. government, not gold, provides the dollar its worth. Gold and the dollar started to go up and down freely, and gold gained its place as protection in opposition to the falling dollar when assurance lags.

While inflation worsened later on in the 1970s and dollars had been worth less, the price of gold took off. Gold struck its high in 1980 - $850 an ounce, or greater than $2,300 in today's dollars. This time is distinct because gold is rallying against all foreign currencies, not just the dollar.

Gold prices will most likely keep increasing until the U.S. as well as Europe get their finances in order, analysts say - and no one should expect that to happen soon. They predict inflation, low for the time, will soar, further deteriorating the value of the dollar and leaving behind only gold as being a good investment.

A word of warning, however, that when you are looking at gold prices, no one truly knows. That's simply because gold doesn't have innate value. It doesn't provide an interest rate, like a bond, or represent a share of a business, like a share. It is fundamentally speculative as an investment decision: You only make cash if the price goes upward.

If Peter Hug is correct, this craze for gold is likely to carry on. The director of the precious metals department for Montreal-based Kitco, one of the biggest dealers of precious metals, says gold is no longer "just for the crazy people." Hug states that until the U.S. tackles its debt as well as deficit problems, there's no limit for your price of gold. "As long as people are terrified that their purchasing power is going to be eroded, gold goes to $3,000 an ounce," Hug suggests.

If prices climb that high, a lot of people are figuring out it's as good a time as any to sell their old jewelry. Pawnshops as well as gold brokers report a spike of people cashing in their gold. Mitt Romney owns $250,000+ of gold; maybe you should own gold too? Today is a great time to buy gold and silver for you investment portfolio to protect your wealth as a safe haven asset. CLICK HERE to Check out Silver Dollar Values Silver Prices now! http://silver-dollar-values.net has all of the tips and details for an intelligent precious metals investing choice.

# # #

Silver Dollar is really a well-loved commodity among collectors. Several discovered collecting the Morgan and Peace silver dollars to be profitable.