Time to buy gold? Major financial services conglomerate in Japan sees gold prices rising

(July 17, 2012) - Economic woes are nothing new today, especially after the tumble the world saw in 2008, but many experts around the world are changing their perspectives about the right time to purchase gold. Gold prices look as if they are going to take a dramatic upward turn in the months and years to come. Right now, troubles in the European Union are one factor causing gold prices to rise at a steady rate and Reuters recently reported that even crude oil wasn't being seen as nearly the valuable asset that gold is to investors. Most gold investors today realize that downturns in the rest of the market are usually quite positive for gold's value; this was demonstrated towards the end of June 2012.

In all, there are now 5 countries in the euro zone which are in need of a financial fix due to their debt problems. This means nothing good to Europe, but for the rest of the world it means that the time to buy gold may be now, while investors are getting gradually more nervous over the state of the EU. May of 2012 showed weak data regarding the economy coming from the United States, as well, according to the Wall Street Journal and this, too, means something to gold investors. It’s important for those that want to be on the safer side of risk and understand that economic issues like this can often lead to drops in the dollar's buying power. Holding gold is safer because it means that even if an investor's other portfolio holdings plunge, gold prices will likely rise as they have historically, so this ends up being a way to counter balance the portfolio.

Leading provider of financial services in Japan, the multinational conglomerate Nomura, surprised many by setting $1,754 per ounce as the price it expects gold to reach in 2012, according to reporters with Goldline International. While this is a miniscule dip, Nomura went on to state that it sees increasing demand for gold in China and that this causes it to remain positive that gold prices will indeed rise through 2014 and most likely 2015, as well.

Central banks buying up gold has been big news recently, along with the Chinese appetite for gold roaring to life, but it is perhaps the fear factor that is driving many investors to shore up their risks with the yellow metal.

Analysts from Nomura told the press, "The further deterioration of the economic recovery, enhanced potential for quantitative easing and continued structural problems in the euro zone lead us to believe that gold prices will stay stronger into 2014 and 2015."

When analysts from a company of this standing say something this serious, it tends to make gold investors stop and think. These investors are after long term gain, and getting gold while prices are low is the smartest move to make. In the years to come, higher prices will even price certain lower and mid-range investors out of the market. For many, the time to buy gold is now.