In order to invest in gold or any other precious metal it is necessary to define the near-term perspectives. Historical data show that during the period of 2001-2011 gold gained 500%.
George Soros, a billionaire, investor and the owner of Soros Fund Management, warns that it is currently dangerous to invest in gold even though he himself is not in a hurry to get rid of his gold assets. Bloomberg reports that Soros Fund Management keeps investing in gold even though gold represents the biggest share of the Fund’s investment portfolio.
Barclays Capital reports that macroeconomic indexes hint at the possibility of another rally. Europe and the US are suffering from the most severe crisis since WWII and the Great Depression. Against this background gold and silver seem to be safe heaven assets.
The US debt ceiling issue made gold hit a new record on July 27th ($1631.2/oz). Numerous experts say that gold is vulnerable about major changes in market sentiments. While they are close to panic, gold will probably see new highs.
Other factors that may push gold prices further up are a slowdown in the production of gold and an increase in the demand shown by China and India. There are rumors that in 6 months gold may hit the level of $2000/oz.
According to the expert from the Department of Commodity Trading, Masterforex-V Academy, technically, gold has consolidated above $1600/oz, while the market looks strong. So another rally is highly probable.
