For the first time ever, the price of gold reached $1,300.07 in London before retreating slightly.
Analysts say this is because worries about the global economy and economic uncertainty as well as weakness of the US dollar.
According to CNN, more specifically:
“All the conditions are there to keep driving gold higher, said Gary Mead, commodities analyst for VM Group in London. A weak dollar, ‘stubbornly high’ unemployment, massive U.S. government debt and ‘a perception that the federal government is willing to turn a blind eye to” its debt are among the biggest drivers.”
Investors typically turn to gold as a “safe haven” during periods of heightened economic uncertainly.
In the past 10 years, the price of gold has increased over 500%, from a low of $258 in 2000.
And analysts don’t see this steep increase in gold prices ending anytime soon.
However, if you use inflation adjusted dollars, gold prices hit their peak on Jan. 21, 1980 at $825.50, which translates to $2,184.08 an ounce in 2010 dollars.
So, many subscribers ask me: “What is the ‘Fair’ Price for Gold Right Now?”
What do you think? Will gold continue to increase, or will it crash? Let me know by commenting below…