Wednesday, May 2, 2007

Gold Investment - 2006 Is Another Year Of Big Rally

Spot Gold price has been keep rising for the past years (2001 - 2005). Will it continue to rise in 2006? Most of the analyst say a definite "yes" this question, now the question has turned to be "How much do you think Gold price can reach?"
Someone mentioned it can reach US00 per ounce. I am reservative on this number but I think 00 is really possible. Today the gold price close at 0. Still another 0 to go !!
1) The Gold market has been bear for about 20 years. The rally has just started and very seldom will finish within a short period of time.
2) China demand for Gold is getting more and more, and supplies are starting to get short. Gold storage is always limited in the world. It will only get harder and harder to mine gold. When supply is short while demand is strong, price will naturally goes up.
3) US dollar will top very soon once the interest rate stops increasing. Weak dollar will benefit Gold price.
4) Gold is always a shelter for capital. If in any case the country becomes unstable, risk of war, or ecomony becomes worse. Investors tends to buy more gold instead of stocks.
5) It is quite clear that Gold is in Bull market cycle. It normally has 3 phases, and it is probably running the 2nd phase. In the 3rd phase, gold price will boost up and everyone will be crazy about buying gold. When this starts to happen, it is a signal the gold bull market is ending very soon.

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