Reasons Gold Will Set An All-Time Record Of $2,400 In 2013 - Gold Prices

Feb. 24, 2013 - PRLog -- No two bull markets are ever the exact same, and gold is no exception. Throughout the last secular gold advancing market in the 1970s, gold increased from $35 in 1968 all the way to $200 by late 1974. Then the unthinkable took place. Between late 1974 and mid-1976, gold prices were cut in half, dropping from about $200 to $100. At the time, numerous gold investors sold out in disgust, never ever to return. How high will silver go? Learn more >>  http://www.silverpricestoday.cc/KITCO-SILVER/

But then a comical thing happened. Gold rates embarked on to climb up once more, rising from $100 in mid-1976 all the way to $800 by January 1980. And anybody who was privileged sufficient to own gold at $35 earned much better than 20 times his or her financial investment in simply 12 years. Twenty-one years later, a brand-new bull market began. Since 2001, gold has regularly performed in what now appears to be a record-setting run. In fact, since 2001 the ordinary return on gold is now simply timid of 18 % every year over the last 11 years. Professionals know of no various other major asset that has actually turned in this kind of performance-- ever before. This grow in gold costs is merely incomparable.

Gold began the year at $1,600 an ounce. Must we get typical returns in this calendar year also; gold might complete 2012 around $1,880. At those levels, gold costs would start 2013 just timid of the all-time high set last year, right around the $1,900 mark. If we assume an average return once more next year, then gold can reach $2,200 or better in 2013. In truth, I believe $2,200 gold is rather likely in 2013. After all, none of the principles supporting gold prices have vanished. Instead, they've only become much more entrenched.

In truth, here are five elements analysts determined that will power the gold bull market upwards for several even more years to come. Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.silverpricestoday.cc/GOLD-COINS/

The Feverish Growth of Fiat Money: Take a look at this chart. It's an image that tells you exactly what you have to understand about fiat money. As you could see, the U.S. and many of the developed world is printing money much faster than the quantity of new gold being brought to the marketplace. The bottom line is that the printing presses are bullish for gold.

The Feverish Demand For Gold: As central banks continue to print, individuals are remaining to feverishly get gold, specifically in the world's two most populous countries, China and India, which in 2002 accounted for 23 % of world gold need. Today, just these two countries alone comprise virtually half of all need at 47 %. This is just the beginning.

Even Central Banks Are Buying: Central banks, particularly in establishing nations, are getting and hoarding gold at a breakneck rate. Up until now in 2012, they've gotten 493 loads, currently exceeding last year's 457 heaps. Lots of believe this belongs to a lasting trend, offering strong support for gold rates in 2013.

High Demand Meets Short Supply: The other side of the equation is supply. The gold mining sector is struggling to discover even more gold. According to Barrick Gold Corp.'s  CEO, the sector as an entire spent a record $8 billion in 2011 to check out for gold. As well as with such huge resources on the search for this precious metal, discoveries are decreasing. Bloomberg reported that in 1991 there were 11 gold discoveries, yet in 2011 there were only 3. Of course, you understand exactly what occurs when there's an imbalance like this-prices increase.

My Favorite Reason For $2,200 Gold in 2013: Here's another reason to be bullish: The large majority of analysts consistently forecast too low and are even predicting decreasing gold costs further out. However guess what? ... They've been regularly wrong for years. Have a look:

The truth is that indications the yellow metal's booming market will quickly end are limited without a doubt. At the same time, breakeven expenses remain to rise amongst gold producers, indicating the price flooring keeps rising.

That's why I anticipate gold rates to set a brand-new all-time record nominal cost in 2013, and to reach the $2,200 level in the process. Smart investors will welcome this trend. Yet it improves. Why $5,000 an Ounce Gold Isn't Out of Bounds.

To begin with, let's take the 1980 peak price of gold - $850 - and adjust it for inflation. That would take the rate of gold to $2,400 in present-day terms.

Much better still, let's take the 2,400 % gain that gold experienced during the 1970s and equate it into present-day terms. From the 2001 low of $255 an ounce, a 2,400 % gain would take the yellow metal all the way up to $6,120 an ounce which makes a $5,000 cost projection seem a whole lot even more reasonable.

However these are simply superficial rate contrasts. If we look at what the fundamentals are informing us, it's clear that gold at $1,770 is a long way from its ultimate peak, indicating gold is still cheap. Experts and analysts recommend buying gold and buying silver today. How high will silver go? Learn more >>  http://silverpricestoday.cc/KITCO-SILVER/