The value of gold has increased by about 30% this year, slightly more than the central bank and other official bodies than expected, but they are usually much easier with their predictions. Most independent analysts believe the price will be between $ 1400 and $ 1500 an ounce by the end of the year and that's where we are.
The main reason behind the bull run has become a Europe of sovereign debt issues and the quantitative easing in the U.S. are also increasing investment demand in Asia, with a dearth of new supply has pushed prices to record levels. more and more institutions and hedge funds started investing in gold is a lack of new supply will start to cause problems in the future. Big institutions are buying the same market that the Central Bank and the IMF may sell 403.3 tons per year, the possibility that some major players have begun to use the free market to buy gold.
When we say that the bank did not even consider raising interest rates in the near future, which will encourage people to put their money into something tangible, like gold bars. As more and more private investors interested in investing in gold, sweet to keep up with demand and prices of small coin and gold bullion tends to increase more rapidly than other investments related to gold.
Latest comments from the two most problematic areas in the economy, the United States and Europe, shows that they are willing to adopt more quantitative easing in 2011, if and when the economy will continue to fight.
The problem with quantitative easing is that the money would not be where it should be. Exit at small and medium enterprises to help them obtain loans more easily and create more jobs. Currently, the money will be the Central Bank to commercial banks and the benefits that stock markets and other investment institutions. This makes investors happy, but do not solve a problem that caused the current situation.
The problem occurs when banks began to lend money to people who can not afford and now the government to provide cheap money to banks to help plug the holes in their balance sheets. Banks pay later, Scott-free and tax are left to pay the bills.
2011 seems to be more positive on gold, as there is no problem that encourages people to buy gold in 2010 was completed and is in fact more were added as the dominoes began to fall. The possibility that more security in the euro area as a nation on the banking system must recognize that they are on the verge of collapse. The Fed may have introduced one or more new round of quantitative easing as the U.S. economy will continue to be lazy and without a new fiscal stimulus that the country will face a deflation would be worse than inflation measure d of quantitative easing.
In short we will likely see greater volatility in gold prices which we are accustomed in 2011, but there is no valid reason for the bull run will end before the above mentioned problems solved.
The main reason behind the bull run has become a Europe of sovereign debt issues and the quantitative easing in the U.S. are also increasing investment demand in Asia, with a dearth of new supply has pushed prices to record levels. more and more institutions and hedge funds started investing in gold is a lack of new supply will start to cause problems in the future. Big institutions are buying the same market that the Central Bank and the IMF may sell 403.3 tons per year, the possibility that some major players have begun to use the free market to buy gold.
When we say that the bank did not even consider raising interest rates in the near future, which will encourage people to put their money into something tangible, like gold bars. As more and more private investors interested in investing in gold, sweet to keep up with demand and prices of small coin and gold bullion tends to increase more rapidly than other investments related to gold.
Latest comments from the two most problematic areas in the economy, the United States and Europe, shows that they are willing to adopt more quantitative easing in 2011, if and when the economy will continue to fight.
The problem with quantitative easing is that the money would not be where it should be. Exit at small and medium enterprises to help them obtain loans more easily and create more jobs. Currently, the money will be the Central Bank to commercial banks and the benefits that stock markets and other investment institutions. This makes investors happy, but do not solve a problem that caused the current situation.
The problem occurs when banks began to lend money to people who can not afford and now the government to provide cheap money to banks to help plug the holes in their balance sheets. Banks pay later, Scott-free and tax are left to pay the bills.
2011 seems to be more positive on gold, as there is no problem that encourages people to buy gold in 2010 was completed and is in fact more were added as the dominoes began to fall. The possibility that more security in the euro area as a nation on the banking system must recognize that they are on the verge of collapse. The Fed may have introduced one or more new round of quantitative easing as the U.S. economy will continue to be lazy and without a new fiscal stimulus that the country will face a deflation would be worse than inflation measure d of quantitative easing.
In short we will likely see greater volatility in gold prices which we are accustomed in 2011, but there is no valid reason for the bull run will end before the above mentioned problems solved.
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