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8 October Gold Price Assessment

Tags: gold

The price of Gold hit $1361 this past week.  An increase of $40.00.  One gold analyst suggested that gold would hit $1400 by the end of October.  At the present rate, gold will hit that by the end of this coming week.

Other Events:

Home Foreclosures:

Bank of America suspended all home foreclosures.  Bank of America now has so many homes in foreclosure its processors can not determine who is making their mortgage payments and who is not.

Unemployment:

Unemployment surprisingly continues at only 9.6%.  This despite state and city governments continue to shed personnel to balance budgets.  Cities continue to jettison teachers, police, firemen, and maintenance personnel, but cut no administrative personnel which is where most cuts need to be made.

On the political front:

No one is making any suggestions about resolving our present economic problems.

President Obama's answer to our economic problems is blame the Republicans.

The Democrat answer to our economic problems is blame the Republicans.

What is worse, the Republican answer to our economic problems is blame the Democrats.

No wonder everyone is jumping on the Tea Party bandwagon!

Another big rat jumped from the Obama ship this past week.  At this rate, by the time President Obama comes up for reelection, the only one left of the original Obama administration will be Michelle Obama!

Dollar Strength:

The dollar did strengthen against some currencies, but overall continued its slide against most.  This caused an increase in the price of oil, which eventually will trigger inflation.


Factor in all of the above and it is pretty obvious the price of gold will continue rising.

Factor in the rate of ascent of the price of gold, and it is pretty obvious that gold speculators are creating a bubble that will be pricked by someone.

Look for a market correction around $1550 an ounce.  Remember that the primary cause of the rise in the price of gold has to do with dollar speculation by the overseas central banks.  When those banks stop supporting the price of gold, it will drop one to two hundred dollars an ounce.  This will drive out the gold speculators and the price of gold will continue to ascend more in line with other commodities and natural resources.

As a long term investment, gold will outperform the stock market and other investment vehicles.  Expect the price of gold to hit $3,000 within two years.



This post first appeared on Senior Citizen Observer, please read the originial post: here

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8 October Gold Price Assessment

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