Gold has been on its present bull run for over a decade. The rise of Monex gold prices is expected to continue well into 2013. The reasons vary, but include an expected recovery to China’s recovery, the continued debt problems in Europe, and the looming fiscal crisis. According to goldmoney.com the continued strong dollar continues to pressure gold spot prices. Yet, gold remains at historical highs and is near $1800 per ounce despite a strong dollar.
We would expect gold to have soared given the continued gold buying appetite of China, and the continued debt problems in the US and a sluggish world economy. In addition, India’s festival gold jewelry festival is approaching adding to pressure to gold’s spot upward. Furthermore, the dollar remains strong despite the recent stimulus from the Federal Reserve. Mining.com states that gold soared $35 when President Obama won re-election. It is likely that this rise in gold will continue.
The Federal Reserve’s stimulus has given gold a huge boost. Consider that gold has doubled in value since 2008 tells us that gold remains a credible hedge. If gold can hold onto its current price level it will mean gold will have gained for 12 consecutive years. This is indeed an impressive record.
Another reason gold is likely to keep rising is due to Asian demand, especially the demand for gold in India. Much of the demand for gold is in the form of jewelry. This aspect of the gold market is typically misunderstood by westerners. According to GoldMoney the main reason gold is bought as jewelry in India is because of the low processing costs, and offers a reliable way to store worth. This method of investing hands down is the best way to save in India, and offers much more worth than the Rupee, India’s currency. This will increase the demand for gold in a substantial manner and will help gold trend upward.
In the United States the most popular way to buy gold is in the form of bullion bars or gold bullion coins. Gold is used as a hedge in the US and demand is high. This too will pressure gold upward. The uncertainty of the fiscal cliff problem will also add to gold’s value. There is however one important component that continues to keep gold from rising to the stratosphere. The pressure of the continued strong dollar has kept gold in check. However, it is important to understand that gold remains very high and may hit $2200 per ounce in 2013, despite a stronger dollar.
When the stock market tanks it is typically a disaster for investors. On the other hand, when gold dips its price remains at a historically high level. The continued sluggish world economy and its associated bad economic news will keep gold high. When gold does decline it always rebounds to a higher level than before the spot price dip. Prudent investors use the services of monex.com, because they offer over four decades of precious metal investing experience. The economy and precious metal markets are complicated. It is prudent to use the services of an experienced broker to untangle the markets. Having a reliable partner just makes sense.