The increase in gold price is tremendous. I have never, in my whole life, seen such an interest from investors in gold before. Gold price has increased hundreds of dollars, just in a couple of months.
Just today, I came across an article regarding the current nonstop gold price increase. The article stated that gold is being discovered less and less each month around the world. [Please note that I saw this information at another website and not sure how true this info is]. The article stated that rate at which gold is being produced is decreasing where the demand for gold is so much higher.
The article stated that lot of investors no longer trust the paper currencies and they want to invest their money in some safe opportunity. The current attraction for many investors is Gold.
The article further said that: some investors who were investing their money in stock markets are now selling their shares in order to invest this money in gold. Investors are worried about financial state of companies in stock markets and the unstable currencies. So for them gold is a very safe and good investment.
State Banks of many countries are interested in increasing their bullion reserves. More and more investors want their money to be invested in gold. Just like these, the article stated more reasons why gold rate will increase further.
This was just one side of the story. I also saw another article stating that around 29 or so years back [in 1980]: gold managed to reach a level of $850/ounce. And here are the average rates of gold, few years before 1980.
In 1979: around $400/ounce [highest was around $520/ounce]
In 1978: around $180/ounce [highest was around $230/ounce]
In 1977: around $140/ounce [highest was around $160/ounce]
And here are the stats for the year 1980:
Average rate was around $600/ounce [highest was $850/ounce]
Are the stats interesting? No?
Why not take a look at the gold rates after the year: 1980?
In 1981: around $450/ounce [highest was around $600/ounce]
In 1983: around $350/ounce [highest was around $450/ounce]
And then from 1984 to 2003, the average rate of gold was around $300-$400/ounce.
Now the second article states that in the past, a similar situation was at our hands where gold rate increased to very high level [in 1980], but then it dropped back. The author of the second article pretty much believed that gold price is likely to come down just like the past.
Now who do you believe? I am not sure who is right and who is wrong: but at least I do know that investing in gold is little risky business in the current situation. You can never know whether the rate will further increase or will go down: like it happened back in 1981.
If you are an investor who is looking for an opportunity to invest his money in: then yes, gold investment is a likeable opportunity these days. But before you buy/sell gold, do some good market research. Make decisions wisely and consider all facts and figures.