A decade ago, a few of us sensed
the beginning of a change in this country; a slow but steady swing like a
pendulum. It was clear our nation was returning to morality and a love of
liberty--qualities of substance. Fittingly, there was a growing shift to
the most substantial asset of all: Gold.
Over these ten years, gold has
proven itself once again to be the best universal asset for safety and
growth. Now, after months of price consolidation, the gold rush of 2010 is
on the horizon. Here's why...
Gold prices hit a fresh 2010
high this week, topping $1,150/oz., despite a firmer dollar as investors
sought precious metals for shelter from debt and currency worries. The
chart above shows that following each of the last six major corrections,
gold prices rose 36% on average.
After rushing above $1,200/oz.
in 2009, prices corrected back to a low of $1,060/oz. in February 2010 and
have been steadily rising ever since.
The chart below illustrates
$1,150/oz. gold is only halfway to a new "inflation-adjusted"
price peak of $2,358/oz. reached thirty years ago.
(using official inflation stats,
what cost $850 in 1980, today costs $2,350).
Gold's price move started in
2000 at $255/oz. and hit a high of $1,215/oz. in 2009 during a period in
which inflation was rather "tame", if government official CPI
numbers are to be believed.
Now, if gold prices grew 62%
during a deflationary period, what is a reasonable expectation of growth
during the inflationary period ahead? Could inflation double today's price?
"Easily" says over 75 experts.
Today gold prices are up
fourfold without inflation. During the last major U.S. inflationary period
(1977-1980) gold prices rose almost sixfold, from $150/oz. to $850/oz.
Inflation fears and market uncertainty are set to push gold prices higher
in 2010. Short-term pull backs in price should be viewed as great buying
"Buying near market lows
helps investors maximize long-term growth. While past price movements do
not always foretell future movements, we could see prices above $1,400/oz.
soon," said Swiss America Chairman Craig R. Smith.
Information contact us by calling toll free 1-877-703-2193 or click the
FREE INFO link at the top of this page.
DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of GoldIRAS.com. Past performance of any investment is no guarantee of future performance. All investments have risk.