Many central banks around the world hold the U.
S.
dollar as their reserve currency.
The United States Federal Reserve Bank seems determined to weaken the U.
S.
dollar and many countries around the world are using their U.
S.
dollar holdings to purchase hard assets like gold and other physical commodities.
Many of the emerging countries including China, India and Russia have been huge buyers of gold.
This huge increase in demand is not being offset by more mining capacity which may lead to much higher gold prices for many years to come.
Individual investors have historically used gold to protect themselves from inflation, currency risk and economic uncertainty.
All three of these catalysts to gold buying are currently present and gold purchases have skyrocketed in recent years.
Many investors buy physical gold bullion but exchange traded funds have gained popularity recently as an easy way to own gold with a smaller outlay of funds.
Gold futures and options are another way that investors are trying to take advantage of the record price moves for gold.
Gold prices may hit $1,600 an ounce next year if the Federal Reserve Bank continues to keep interest rates low.
Inflation may be an issue by the end of 2011 if commodity prices continue to climb.
Precious metals have been leading the way higher for the last 12 months and may lead the rest of the commodity sector higher.
The commodity bull market may last for many years if the current conditions remain.
S.
dollar as their reserve currency.
The United States Federal Reserve Bank seems determined to weaken the U.
S.
dollar and many countries around the world are using their U.
S.
dollar holdings to purchase hard assets like gold and other physical commodities.
Many of the emerging countries including China, India and Russia have been huge buyers of gold.
This huge increase in demand is not being offset by more mining capacity which may lead to much higher gold prices for many years to come.
Individual investors have historically used gold to protect themselves from inflation, currency risk and economic uncertainty.
All three of these catalysts to gold buying are currently present and gold purchases have skyrocketed in recent years.
Many investors buy physical gold bullion but exchange traded funds have gained popularity recently as an easy way to own gold with a smaller outlay of funds.
Gold futures and options are another way that investors are trying to take advantage of the record price moves for gold.
Gold prices may hit $1,600 an ounce next year if the Federal Reserve Bank continues to keep interest rates low.
Inflation may be an issue by the end of 2011 if commodity prices continue to climb.
Precious metals have been leading the way higher for the last 12 months and may lead the rest of the commodity sector higher.
The commodity bull market may last for many years if the current conditions remain.