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In early 2009, when Gold Prices was only about US$800, I mentioned that Gold prices are likely to re-test US$1,000 because of concerns about future inflation. I wrote "Gold Prices might hit record high". Now, this has already happened. Below is comments from one website on 19 Sep 2009. Regards. Dennis Ng, http://www.MasterYourFinance.com The declining dollar, central bank purchases, the de-hedging by gold producers and rising inflation expectations served as catalysts for gold bullion’s strength, causing the yellow metal to close above the $1,000 level for the sixth consecutive day on Friday. While gold’s move grabbed the headlines, platinum (+42.5%) and silver (+50.5%) have actually outperformed gold (+13.9%) significantly since the start of the year. 
Source: StockCharts.com  The past week’s performance of the major asset classes is summarized by the chart below - a set of numbers that indicates an increase in risk appetite.
Source: StockCharts.com
Gold prices might hit New Record High
With countries all over the world pumping money into their economies, this will lead to currencies losing its value, and with the world in turbulence, more and more people would start to switch some of their money into Gold, as Gold is a safe haven especially in times when currencies take a tumble.
In recent months, oil prices have crashed by 70% from US$148 to about US$44. On the other hand, Gold prices stood firm above US$800 despite the fall in oil prices. Year 2009 might see Gold prices rising above US$1,000 the historical high.
As some people might already know, for more than 2 years, I've spoken about why I invested 8% of my money into Gold and Silver, as a possible "insurance" (hedge) against Global Uncertainties, especially possibility of a stagflation.
As some might also know, I have some investments denominated in US$. Thus, how do I mitigate the risks of a possible devaluation of the dollar? By having some money into Gold and Silver.
Cheers!
Dennis Ng, http://www.HousingLoanSG.com |
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