So far this year we have seen gold prices average over $1,200 an ounce. This year marks the ninth straight year of gold’s bull market. We have watched gold hit record highs throughout the year. This raises the question, where does gold go from here?
During March of 2008, just two short years, gold traded over $1,000 for the first time. So far this year, gold has averaged over $1,200 an ounce. And since hitting the $1,300 mark has yet to recoil. With momentum like this we likely won’t see gold come down anytime in the near future. Some insiders are even expecting to see the current price of gold double by the end of next year.
Some analysts say gold can only go up from here. According to a recent article from the Wall Street Journal there is a huge demand for gold right now. And while we may have been attributing the gold rally to a failing economy, inflation woes and the declining value of the dollar, we may have forgotten about gold demand. WSJ reports that various countries such as China, Russia and India are buying up gold by the brick fueling the gold rally. These countries will continue to buy gold bullion furthering the gold rally.
While global demand for gold is not the only cause for the skyrocketing price it is a factor. So what needs to happen for the price of gold to drop? Several things could cause a drop in the price of gold but none of which seem all that likely. A major gold discovery could cause a drop or a solution the U.S. federal budget crisis might also cause a dip in gold price.
Gold has only just begun its rise and gold along with other precious metals that are also making leaps and bounds should be watched closely. This is a bull market with many years still ahead of it.
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Article by Chelsea Perry