Be Careful to Invest in Gold

Be Careful to Invest in Gold | Bizcovering

Like flowers that are blooming, blossoming, fragrant, the current gold price bloom but be aware if he at times can be dimmed and sank.

I’m sure many investors join the big wave of investment into gold amid rising gold prices, in two years this is just fantastic. Behind the story luxury gold investments, it appears that investors in this year should also be extra vigilant and careful with the movement of this precious metal commodity prices. The future of a growing U.S. economy will sustain improved global economy, a stronger U.S. dollar again and will eventually break down gold as an investment security, safe haven.

Investors are classified as super impatient, maybe now is the right time to take off their shoes. It is not separated from gold price increases for 12 consecutive years. Of course the price of gold that you bought a decade ago would be worth a very high current. In the short term than the size of its investment, the golden moments of this great potential corrective action. Not much left to confirm the belief that gold will fly again as the previous prices.

On 22 August, the price of gold hit a record $ 1,891.90 an ounce on the accompanying policy issued software Senral U.S. Bank. But then, gold prices declined about 15 percent and is currently trading at $ 1,647.70 per ounce. At least the current gold price has dropped 10% until December alone. Even so, throughout 2011, gold prices are up 10%, better than the performance of the stock index Standard & Poor’s 500 index ended flat course.

Ditahun 2011, many large and small investors cut their positions in gold investing. In a note ETF, the number of gold contracts currently held by investors only reached 1.250 metric tons as of December last. The numbers are fewer than the position in December 2010 that could reach 1.281 metric tons.

The investors who invest in gold, have yet to see that the Fed will lower its soft return policy, although Europe itself in dealing with the debt crisis has taken various policies that make the euro down. The pattern of rise and fall of the Euro also influence the gold price fluctuations. The increase in the price of gold will be seen in pergarakan Dollars. Dollars in the year 2012 is estimated this will be strengthened, in line with the improving U.S. economic conditions. This will create pressure on gold prices, gold luster as a safe haven will be shed.
In the short term, gold investment is expected to remain heavy to provide a significant advantage. Gold as an investment security plays an important role especially against inflation and currency exchange rate fluctuations. One rekomendadi in gold investment was also a safety net other investment is the amount of gold investment is no more than 5% of the portfolio.

The price of gold, in the year 2012 is not expected to end up exceeding $ 1,700 per ounce. Maybe there will be a new price peaks or valleys even new, but given the potential for dollar, gold prices are not expected to be much stronger. The rise in gold prices on the other hand did not doubt could happen, especially if Europe increasingly chaotic conditions in solving the debt crisis there.

Not that in the middle of this pessimism, not leaving the parties are optimistic. Some parties are optimistic that with rising gold prices, gold prices even believe in the end of the year could reach above $ 2,000 per ounce. Optimists Party is represented major banks like Bank of America Merrill Lynch in London, who believes gold prices will reach $ 2,000 per ounce at the end of 2012.

Still the same strength as last year that pushed gold prices rose to near $ 1.900, which will support gold prices. Furthermore it can be said that in addition to gold as a protection from the risks that occur in the money market is also to protect portfolios amid the global economic conditions are uncertain now. Gold to be protective against patterns of movement style “black swan (black swan)” a time when rising geopolitical scene.

Economic growth in many countries has also improved while the U.S. itself is also still piling up debt everywhere. Gold trade in 2012 is expected to remain in the range and try to penetrate the boundaries of psychology at the level of $ 1.450 per ounce. If gold is such a position, it is appropriate to make a purchase of gold.