Gold is positioned to hit $1,800 in just a few short days.
As the price for the yellow metal steadily increases, there will likely be a pause in incline.
Experts anticipate gold will then climb even higher to new all-time records just before summer begins — and here’s why, according to Mineweb:
1.) Additional monetary stimulus on a global level is right around the corner.
Japan and Great Britain have confirmed plans to go forward with their quantitative easing plans. Eurozone countries intend to inject “massive amounts” of money into Spain, Greece, Italy, and Portugal.
Meanwhile, rumors linger of a possible round of QE3 here in the United Stat
2.) Gold demand is increasing exponentially across the globe — from big Central Banks and citizens alike.
Last year was a record-breaking year for physical gold demand.
Global demand for gold in 2011 rose to 4,067.1 tonnes, worth an estimated US$205.5 billion — the first time that global demand exceeded US$200 billion and the highest tonnage level since 1997, according to the World Gold Council’s Gold Demand Trends. Of the total 4,067 tonnes 2011 world gold demand, 1,703 tonnes (41.8%) came from China and India.
Last week the World Gold Council (WGC) provided details on the 2011 World’s demand from Central Banks Gold purchases. In their report, the WGC disclosed that the World’s Central Banks purchased 440 tonnes of Gold in 2011, a 471% increase from a record high of 77 metric tonnes in 2010.
Gold bullion, jewelry, and coins are all undergoing a historic surge in consumer interest on account of recent economic happenings.
3.) The public perception of gold as a mainstream investment has changed dramatically.
Today, billionaires publicly share their confidence in their personal gold holdings in daily broadcasts.
Gold has seeped into mainstream media as it glimmers with hope for investors looking for an asset to hedge against debasing currencies and inflation…
Ten years ago, less than 5% of money managers and financial planners would even suggest investing in gold, as it was merely known as a “non-productive asset class.” Fast-forward to present times: Fourteen states have legalized using gold and silver as currency in commerce transactions.
In the meantime, U.S. Congress is speculating on the idea of returning to a gold standard…
4.) Low global interest rates on bank CDs, corporate, and government debt.
In the United States, Europe, and Asia, interest rates have dipped all the way to 20-year lows.
Earning a fixed return of less than 2% on a multi-year AA government debt, versus an average return on gold over the past 10 year of 20%, gives gold the advantage for income-focused investors.
Plus the U.S. Federal Reserve has virtually guaranteed that interest rates will remain low for the next two years.
Gold holders are capitalizing on this while interest rates remain at historic lows.
It’d be foolish to assume gold was going anywhere but up when you consider these factors.
If you want more gold in your portfolio, analysts, billionaire investors, and market experts all suggest making a move in the next few days… and you’ll definitely want to act before summer arrives.