|
|
|
|
|
|
|
|
|
|
What should you expect from Gold in 2009?The volatility in global markets amid the credit crunch makes it difficult to forecast how currencies are going to move. So what will 2009 bring for the gold price? There have been sharp fluctuations in the gold price and gold has seen daily swings widen. The Bank of England can now engage in quantative easing, effectively printing money, which boosts the money supply and raises inflation. This does not bode well for sterling. The more the focus is on the UK banks the weaker the pound is likely to be. So this is leading to even greater borrowing by the government and you may be wondering if we can really afford all these measures. The euro is also under pressure due to lack of confidence in the euro zone. The European slow down will see the euro tumble to $1.20 which is an 8% drop in current levels. The yen strengthening is causing real damage to its exports and the bank of Japan is likely to intervene in the currency market to weaken it this year. The dollar looks to be devalued by the Federal Reserves moves to boost the economy. A strengthening in the dollar and the yen, global data just looks grimmer and the banking sector is far from sorted out. The trend, therefore, is to look towards risk aversion in investments. Gold is the sole asset that can be turned into cash at a profit and its performance when considering the current global conditions is astounding. In complete contrast to all other investments it is selling at all time highs in all currencies. Euros, rupees, yen, British pounds, even Turkish lira. Precious metals consultancy GFMS predict highs of above $1000 an ounce as investors begin to worry about the collapse of the American dollar. The LBMA panel’s estimates from 2009 are for a gold price
high of $1,074, a low of $721 and an average of $881. Gold is on track
to $920 - $940 by the end of the month. This was July’s top Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORKeith McGregor is a partner of Strawberrysoup, a web design agency with offices in Chichester and Bournemouth. Strawberrysoup specialise in creative web design, content managed websites, search engine optimisation, search engine marketing and graphic design
|
|||||||||||||||||||||||||||||||||||||||||
Partners
|
