According to World Gold Council, gold sales will be better in 2010. This is owing to the fact that the demand for gold is picking up. Investors are turning towards gold as the perception of gold as a good investment value has strengthened more than ever in the past.
According to World Gold Council experts, the sale of gold is bound to hike, especially in the Middle East in 2010 with the initiatives of Gold Council. The gold council will launch a new brand of gold jewellery targeting middle and high income group women in the Middle East. Moreover, the gold council has planned to launch an initiative to encourage investors to turn towards the yellow metal. This campaign is planned to be launched in the second half of 2010.
Experts predict that 2010 will witness a stampede towards gold-investment. This is due to investor fears regarding inflation, bad economic situation and the weak dollar value. During economic growth, there are all the chances of inflation. Investors turn to gold-investments in order to counter act the impact of inflation. In fact, inflation and fear of inflation both have a good effect on gold generally. The uncertainty in global economy is also a contributing factor to the increased gold demand. Some of the gold market experts predict that gold-prices will be rising $1100 to $1300 an ounce by the end of year 2010.
Unbelievable, but some independent sources are so optimistic about bullion that they claim that gold will hit $5000 an ounce. Looking at the history of goldbullion, we can see that bullion has increased in value and price pretty significantly. From $255 an ounce in year 2001, the price of gold quadrupled to more than $1100 an ounce. Due to this trend, gold has become the trade of the decade. Hence, if the same trend continues, who knows where the price of gold will land up in the future? It is worth mentioning that no clear statement can be given regarding the price of gold, as it depends on variables such as dollar rate and economic conditions.
Negative growth can result in deflation adversely affecting corporate bonds, earnings and equity prices. Gold-investment, again, is a viable solution to protect one from being hit by deflation. This is because gold is the most stable vehicle of investment in times of deflation. A poll conducted by ING recently, showed that Asian investors view gold as the best inflation hedge,- even better than equities.
Year 2009 did set up new average high for ingot at $1,088. 2010 seems even more promising. In the previous year, central bank bought enormous amounts of gold. This was the first time in the past 20 years that central bank was a net buyer of bullion rather than a net seller of ingot. In 2009, the US budget deficit soared to $1.4 trillion. There is growing anxiety over budget deficits, economic instability and risks of inflation; all the reasons for investors to turn to bullion.
In the year 2010, gold is truly shining! If you have not already done, it is the time to make your move.
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