GOLD Could Hit $10,000!
Many experts out there believe that gold could go much higher because of world-wide debt problems and another possible financial crisis, and some even believe gold can reach a price of $10,000 an ounce. Gold is now trading around only $1,650 an ounce, so an investment in gold today could provide investors will quite legendary returns.
Here are some reasons why gold could reach $10,000 this decade, and price targets from some experts.
Reckless Money Printing From Governments Around the Globe
Every time a government bails out a bank or announces a stimulus program, known here in the United States as "Quantitative Easing," they are expanding the money supply. When they expand the money supply at a fast rate, this causes inflation, an increase in prices for consumer goods and commodities. Those predicting a $10,000 gold price believe that the worst is yet to come for inflation - some even believe we are heading for a hyperinflation, a complete loss of co
Governments are printing money at alarming rates to try and boost the economy and create jobs, but what they are really doing is just creating inflation. So far the Federal Reserve's efforts to create jobs has failed miserably, which is leading some to believe that another round of QE will be on the table shortly.
Cheaper and less valuable currency makes it easier for governments to pay their massive debt loads. What do you think the US is doing now? The US national debt is currently hovering near $15.6 trillion, more than our gross domestic product, according to USDebtclock.org.
A Mania Could Form As We Reach Phase 3
Gold has gone up for 12 years in a row but hasn't reached the parabolic phase that many believe will happen soon. If gold reaches levels over $3,000 - $5,000 an ounce, a bubble could then form and I believe that prices could even reach levels over $20,000 an ounce. $1,650 is NOTHING compared to
Could gold be a bubble? Just 12 years ago we saw worthless tech companies stocks trading at insane valuations. The tech bubble saw many companies with almost no earnings or worth shoot to the moon. But gold has value, unlike those techies. Ever hear of the tulip bulb mania? Tulip bulbs selling for the price of a house! Again, gold has real value, because of its rarity and the effort it takes to pull it out of the ground. So a higher price isn't really all that crazy.
What happens if the US defaults on it debt? What happens if people wake up the realization that our "money" is nothing but worthless paper? There are many issues that can spark a massive increase in the price of gold in the short term.
Experts Who Believe Gold Will Reach $10,000 an Ounce
Marc Faber - Faber said in a Yahoo! Finance article in 2011: "according to some statistics the gold price today should be worth between $6,000 per ounce and $10,000 per ounce."
"I have argued for years that the Federal Reserve with its artificially low interest instead of creating monetary and economic stability it has created more instability by creating the Nasdaq bubble, the housing bubble, the commodities bubble and now creating a giant government debt bubble."
Peter Schiff - Schiff said in a CNBC interview back in 2010: "I am an unapologetic gold bull... what's happening is making me more bullish (in Europe).... no matter how much money they borrow the banks will print so they don't default... Now instead of saying gold will go to $5,000, I might say it's going to $10,000."
Max Keiser - "Gold and silver are real..." Max explains that the manipulation in the gold market will be exposed and short-covering will result in a short squeeze, helping gold reach unbelievable levels.
Finally, legendary gold investor Jim Sinclair said on a KingWorldNews article in 2011 that insane debt levels in the US and the world will contribute to the big move higher in gold prices: "...gold would do what it historically attempts to do and that is to balance the balance sheet of the United States of America’s external foreign debt...and when we do the calculations we come up with a figure that is in excess of $12,500.”
What You Should Do
Investing in gold today is easier than ever before. You can buy coins or bars from a local coin dealer or online at APMex.com and Kitco.com, very trusted dealers. Store the physical gold in a safe at home or in a bank if you desire.
I personally believe that the biggest gains over the next 5 years will be made in the gold junior mining stocks and the gold exploration companies.
IMPORTANT NOTE: It's important to understand that there is a lot of fraud out there in gold investing. You do NOT want to get ripped off by gold dealers or pawn shops you take advantage of people every day! I recommend GoldScamsExposed by Paul Kruger, who will teach you everything you need to know. If you are serious about making money and protecting your financial wealth, you must read it now.