A few years ago, an ounce of gold could be bought and sold for about $400. In mid 2010, gold prices were three times that much, coming in at about $1,225 per ounce. People were astonished at this heighten price and wondered how much higher the price of gold could get before it finally came down.
One year later, the price of gold is still on the incline. It currently rests at about $1,400. The steady incline of gold does not seem to be changing its course any time soon. Consider that an investment of $10,000 in gold made in 2004 would be worth more than $36,000 today.
Why are gold prices increasing so steadily? The first reason is inflation, both locally and on a global scale. As the prices of goods increases in this country and worldwide, gold serves as a way to evade such inflation of prices. National debt is a major cause of inflation, and with the United State's deficit at $14 trillion, it is clear that inflation is going to be an issue for Americans for the next several years, or what is more likely, the next several decades.
As prices increase, there is also an increase in the demand for jewelry and other goods that require gold in their manufacturing. Many people picture gold jewelry and coins when they consider gold prices, but electronics like cell phones and computers utilize gold as do medical equipment and the fields of dentistry and aerospace. Along with its use in various industries, gold is also seeing in an increase in demand from investors. Many people know that gold prices are on the rise, so they are buying now before prices hit their high and come back down. Those who have already invested are holding onto their gold until the best time to sell, increasing the shortage of gold as others are pining for their opportunity to invest in this precious metal.
Many gold experts predict that the price of gold will exceed $2,000 per ounce within the next couple of years. Others believe this is a conservative prediction and insist that by 2015 or before, gold prices will reach $3,000 per ounce. Whatever the maximum amount that is reached, it is clear that the direction prices are taking is upward in nature. When looking for the best time to buy, watch for dips in price and purchase from a wholesaler that will offer lower prices as well.
One year later, the price of gold is still on the incline. It currently rests at about $1,400. The steady incline of gold does not seem to be changing its course any time soon. Consider that an investment of $10,000 in gold made in 2004 would be worth more than $36,000 today.
Why are gold prices increasing so steadily? The first reason is inflation, both locally and on a global scale. As the prices of goods increases in this country and worldwide, gold serves as a way to evade such inflation of prices. National debt is a major cause of inflation, and with the United State's deficit at $14 trillion, it is clear that inflation is going to be an issue for Americans for the next several years, or what is more likely, the next several decades.
As prices increase, there is also an increase in the demand for jewelry and other goods that require gold in their manufacturing. Many people picture gold jewelry and coins when they consider gold prices, but electronics like cell phones and computers utilize gold as do medical equipment and the fields of dentistry and aerospace. Along with its use in various industries, gold is also seeing in an increase in demand from investors. Many people know that gold prices are on the rise, so they are buying now before prices hit their high and come back down. Those who have already invested are holding onto their gold until the best time to sell, increasing the shortage of gold as others are pining for their opportunity to invest in this precious metal.
Many gold experts predict that the price of gold will exceed $2,000 per ounce within the next couple of years. Others believe this is a conservative prediction and insist that by 2015 or before, gold prices will reach $3,000 per ounce. Whatever the maximum amount that is reached, it is clear that the direction prices are taking is upward in nature. When looking for the best time to buy, watch for dips in price and purchase from a wholesaler that will offer lower prices as well.
About the Author:
Michael J. MacDonald is the president of Wholesale Gold Group, a National Precious Metals Dealer. To learn more, visit http://www.wholesalegoldgroup.com today!
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