Silver Dollar Values Prices Soar, Five Reasons Gold Will Set Historic Record Over $5,000 In 2013

As the mania sets in & greater prices, by themselves, beget greater prices, with gold now increasing in the type of near-vertical climb that's the hallmark of a speculative mania. This is where the $5,000 price point will probably be reached.
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Feb. 25, 2013 - PRLog -- No two bull markets are ever exactly the same, and gold is no exception. Throughout the last secular gold bull marketplace in the 1970s, gold rose from $35 in 1968 all of the method to $200 by late 1974. Then the unthinkable occurred. In between late 1974 and mid-1976, gold prices had been reduce in half, dropping from about $200 to $100. In the time, many gold investors sold out in disgust, by no means to return. But then a funny thing occurred. Gold prices started to climb once more, increasing from $100 in mid-1976 all of the method to $800 by January 1980. And anybody who was fortunate sufficient to personal gold at $35 earned better than 20 times their investment in just 12 years. Twenty-one years later, a brand new bull marketplace started. Since 2001, gold has regularly performed in what now seems to become a record setting run. In reality, since 2001 the average return on gold is now just shy of 18% annually over the last 11 years. So let's take a closer look. How high will silver go? Learn more >>

5 Fundamental Factors Gold Will Soar in 2013. Gold Fundamental No. 1: You Cannot Ignore Inflation:

Demand for gold as a store of worth has surged amid speculation that inflation will choose up following the Fed, the Bank of Japan and also the European Central Bank announced plans to purchase more debt. This new cash printing has raised inflation expectations pushing gold to new highs.

That follows a pattern established from December 2008 to June 2011as gold soared 70% following the $2.3 trillion dollars produced in the first two rounds of quantitative easing. Now that the Fed has produced QE3 an open-ended proposition, commodities in common and gold in specific will undoubtedly edge greater.

The purpose? With each round of printing, the U.S. dollar becomes worth less and less driving up prices around the whole sale level.

In reality, ever since Nixon closed the "gold window" in 1971 the buy power of a single dollar has decline to a mere 17 cents.

As Milton Friedman once stated, "Only government can take completely great paper, cover it with completely great ink and make the mixture worthless." Rare Coins, Silver Coins, Gold Coins, Learn more >>

Gold Fundamental No 2: Gold is Real Cash

The substantial fall in the buying power of a dollar only strengthens the case that as a store of worth gold is real cash. The reality is gold has been a monetary tradition for millennia.

Almost 2,000 years ago Aristotle laid out what traits make for great cash. Based on Aristotle:
It should be tough.
It should be transportable.
It should be divisible.
It should be constant.
It should have intrinsic worth.
So it is no accident that probably the most typical basis for cash - in all of human history - has been gold. You may wish to reread that: probably the most common basis for cash - in all of human history - has been gold. It is no accident.

After all, only gold meets all 5 of these specifications for sound cash.

It's only in the previous century that fiat cash has supplanted gold or gold-backed currencies on a worldwide basis.

The truth is Fiat currencies just like the dollar are just a fairly current, and failing, experiment in economics. So a lot so, it is become exceedingly harmful to hold them of late.

Editor's Note: How harmful? A lot more than many people understand, based on this new investigation.

That is why as many as 13 U.S. states wish to issue their very own currencies in silver and gold.

What is more, Utah has currently signed a bill into law recognizing U.S. mint-issued gold and silver coins as an acceptable type of payment.

The coins are dealt with like U.S. dollars for tax purposes and Utah State citizens can now contract to pay each other in gold if they so choose.
Gold Fundamental No. 3: Investment Demand is Exploding:

Big institutional investors - hedge funds and pension funds - are making big allocations to gold, as are person investors.

One of them is PIMCO's Bill Gross who stated in a current white paper that gold and real assets could be the only ones to thrive in an acute fiscal crisis in the U.S. Based on Gross, the most recent round of quantitative easing produced gold "even more attractive" and owning the metal should be regarded as part of a diversified portfolio.

Gold Fundamental No. 5: We've however to Attain the Mania Stage

: Each bull marketplace in gold has 3 stages:
Stage One: Currency Devaluation.
Stage Two: Investment Demand.
Stage 3: A culminating Mania-Buying Spree.
Exactly where are we now?

In the moment we're nearing the finish of stage two which means the mania stage is not far behind.

Stage 3 is when all of the stops get pulled out. That is when the public lastly becomes conscious of gold's progressive rise. It is when we'll see a marketplace bubble akin to what we saw with "dot-com" stocks back in the late 1990s, or U.S. stocks in late 2007.

Because the mania sets in and greater prices, by themselves, beget greater prices, with gold now increasing in the type of near-vertical climb that's the hallmark of a speculative mania - a bubble.

This really is exactly where the $5,000 price point will probably be reached.

A group of economists think gold could shoot even greater than $5,000 due to a frightening "pattern" noticed in our debt and cash supply that guarantees they are going to fail.

"There's no mania like gold mania," says Peter Krauth, "And regardless of the truth that we've been in a potent gold bull marketplace for more than a decade currently, I think the best is yet to come for gold prices."

The mathematical outcome is nearly assured: Gold has to increase in price significantly to reflect its true worth.

In light of the above information, most experts and analysts suggest buying gold and silver today and holding it for the future.  How high will silver go? Learn more >>
Source:Lawrence A. Williamson
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