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Analysts Calling for Gold Prices to Reach $10K an Ounce

September 18, 2012366 view(s)

It's beginning to look more and more positive for investors in gold as a growing number of analysts and economists call for gold prices to do much more than just double or triple. The Federal Reserve taking quantitative easing to the max means big things for the future of the yellow metal, with the latest gold prices being forecast reaching $8,000 or even $10,000 per troy ounce. Precious metals have a long history of performing very well under economic stress and a national debt of $16 trillion is certainly the kind of stress that can trigger chaos at all levels of the United States' economy, not to mention the rest of the world. A recent article by reporter Sam Ro in Business Insider cited several instances of highly respected members of the financial world stating exactly this, predicting very positive things for the future of hard assets like gold and silver.

Not only are these latest gold prices being forecast a good sign for now, investors are being told to expect to hear even more calls along these lines. It has become clear to most economists that a fix for the U.S. economy is going to be incredibly difficult to find. This difficult fix means that gold prices are likely beginning to show the increasing frustration of investors with the government's lack of real, effective solutions as well as the volatility of the stock markets. When investors fear that their investments are going to be subject to unreasonable risk, or that inflation is likely to grow to the point that their cash holdings will diminish in value, precious metals are the most common safe harbor. The good news this time is that more people are educated on the fact that hard assets like gold, silver and platinum are a good idea which means the market will remain quite strong and likely become more stable.

According to the latest report from Barron's Scott Minerd, chief investment officer of Guggenheim Partners, there's a more reasoned but equally simple solution to the hedging conundrum: gold. "In extreme circumstances—like miscalculations regarding inflation by the Federal Reserve—the metal could hit $10,000 per troy ounce," he asserts.

Miscalculations give investors a reason to feel insecure and historically when investors feel insecure, they begin to look for safe places to invest. Of all the choices available today, gold remains the most stable and is far easier to invest in today than it ever has been before. The ease of access that today's investors enjoy means that it is very likely we will see prices rise due to more investors being able to buy gold at a faster rate. Market accessibility plays a role in growing the market's size and some analysts believe this is currently taking place.

While investors will always have to make the decision about the right way to invest for their own portfolios, it is a smart idea to watch for signs in the media. Big changes in price could mean big profits for those who buy gold while prices are as low as they are today.

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