Will gold go up again this year?

It is almost two years since I suggested that there may be a good dollar in gold. I must say that so far it has been doing a lot better than many expected, yet fell well below the expectations of the pundits who thought it may go out through the roof.

It looks as if the market will determine the default price level once a few more fundamentals are known about the world economy.

The condition of the world economy has seen some countries betting on gold as a way to stabilize their currency in a dangerous fiscal environment.

As much as I hope for peace and tranquility it has seldom been a friend to gold prices.

As I have said before, gold is the one metal that has more than just a capacity to induce buying for profit alone. Gold is more likely to rise at this time due to the uncertain value of currencies going forward as a means of avoiding major paper losses.

War, terrorism and financial discord all come in to play with the price of gold as fear motivates economists in many a large economy.

Gold bullion
Gold bullion

I am expecting the pattern of gold prices to continue to fluctuate then rise as it has lately.

I reckon the next high will see $1500 by the end of this year unless there are major advances in peace efforts throughout the world. I am still for buying, even after the strong performance displayed again last year, I believe it has a lot further to go.

Maybe we wont see the $5,000 an ounce that would bring it up to the inflated equivalent of it's price at the end of the seventies, but it may well keep rising at least until there is a real change in the world economic and peace outlooks.

Indian and Chinese punters will continue to buy gold as long as the rest of the worlds economies are in trouble.

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Comments 16 comments

Mr Tindle profile image

Mr Tindle 5 years ago

earnestshub,

I think you will be proven correct on this. Gold still has more highs to make. Personally I think it will go to at least $2,000 or higher. It all depends on how much money the Fed continues to print.


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Well Mr. Tindle we are in agreement here. I believe there will be much printing from the Fed this year.


Rod Marsden profile image

Rod Marsden 5 years ago from Wollongong, NSW, Australia

I agree that gold will rise. When it will fall isn't so clear. I can see the European banks getting in deeper and deeper trouble in 2011. There is the domino effect. Banks in Greece and Ireland are going to be basket cases for a few years. Spain hasn't been stable for at least a decade.

Mind you, relying on gold to get yourself out of trouble is a very risky business. The good thing about gold nowadays is that it is used in computers so it isn't just valuable because its shiny and pretty.


aguasilver profile image

aguasilver 5 years ago from Malaga, Spain

Too true about the Chinese and Indians buying gold! and I agree it will keep rising.

The point about gold is not it's profit potential, but its ability to save you life IF the proverbial hits the fan...... a chunk of gold will open opportunities of escape that mere money will never budge.

Nice one Earnest.


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Thanks Ron, like you, I can't see the trigger for gold going down, and as you pointed out, it remains useful in technology such as computers. If Europe can't rescue all the EU countries that are up against the wall with debt, their will be those in Europe who take refuge in gold.


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Thanks aquasilver, I agree, as pointed out in my previous hub on gold prices, when people don't trust paper currency, it is of little value, whereas gold has worth in other ways as it is needed in many industries and will remain useful.

If the poo hits the fan gold will go ballistic.


Shalini Kagal profile image

Shalini Kagal 5 years ago from India

Yes, Ernest - gold will always be the fall back in case of any financial bubble bursting - but I prefer putting more money in silver - it's appreciated considerably more than gold over the last 2 to 3 years. And the silver reserves are running out.


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Hi Shalini, Silver certainly has performed well, and I would like to know more about silver. Maybe you could write a hub about it. Thank you for your comment.


Hello, hello, profile image

Hello, hello, 5 years ago from London, UK

I enjoyed reading this hub and in my non-existing knowledge I agree with you. I can't see the exonomy improving.


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Thank you Hello, hello. It seems difficult for the experts to understand the economy so I guess we are all like you. I don't know where it is going either but with a new crisis almost daily, I agree there are few signs of it turning around any time soon.

Unemployment is a huge problem that is historically slow to recover as well.


kimberlyslyrics 5 years ago

I really really really hope so my dear friend

hmmmmmmm

xo

lyrics


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Thanks for looking in Kimberly. If gold goes back over $1,400 I am going prospecting again!


dear addict profile image

dear addict 5 years ago from where people are helping people

for me you meant right? It's okay must have just been a typo

sorry too lazy to re sign in cause i'm writing ha now that's gold

i love gold E 'K?

lol

xo


Peter Owen profile image

Peter Owen 5 years ago from West Hempstead, NY

I'm taking a breather on gold right now. I was in for about 5 months. I just think it is going to be flat most of the year. We'll see.


earnestshub profile image

earnestshub 5 years ago from Melbourne Australia Author

Thank you Peter,

There seems to be a lot more to factor in to a gold peak at this time, with world events that could go either way, you may well be right.


psbhatt profile image

psbhatt 3 years ago from HYDERABAD

Best choices to invest would be gold traded mutual funds whose net asset values are marked to gold prices daily.

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