Golds Historic Climb to $1200!

March 18, 2010 by Carl Finegold
Filed under Gold Coins, Investing in Gold

Historical Gold Prices mean Nothing. Or Do they!?

1975 - $150 / ounce
1980 - $660 / ounce
1985 - $320 / ounce
1990 - $385 / ounce
1995 - $385 / ounce
2000 - $275 / ounce
2005 - $475 / ounce
2009 - $1,050 / ounce
2010+ - ???

March 2010 Metal Price	1980's High Price	1980's High Price (adj. for Inflation)
$1,125	$850	$2,275

The information above is a general overview (average) of prices for gold for each year. It comes of NO surprise that gold was high in 1980 - massive inflation, unemployment, etc. Then in 2000, Gold was just above 1975 levels - why - Massive creation of a bubble market - great markets, etc. Well - 2010 is shaping up to be the worst EVER and $1200+ / ounce Gold is COMPLETELY realistic. Let's look at the basics.

1. Unemployment - historical highs.
2. Inflation - curbed only by the Fed holding the rate at near 0%!
3. Deficits, and More Deficits - and if we need to raise the ceiling, MORE DEFICITS!
4. US Dollar - Devalued by borrowing, spending and printing.

Simply put - we have the PERFECT storm brewing to SHOOT us past $1200 / ounce gold and perhaps shattering $1500 ceilings and more. Now is still a great time to invest in Gold for a long term position. The $1145 ceiling is the current road map - we move past that and we will have to watch the prices closely - I would be surprised that if we break that mark and investors stay on - we could easily see $1200 / ounce Gold within the week we see that threshold met and sustained.

The AU Pendant is a photo from a website http://www.itsno.name - where you can buy Periodic Pendants, Rings and More. Great concept for a product.