Gold is a very precious metal found in the earth. No other metal has achieved this high status. For centuries, it has been used for different purposes, and it has been associated with high status in the society. If you go through the history, you will see that the emperors, the kings, the queens and all the rich people had great stocks of gold.
They used to wear gold jewelery and used gold utensils, cutlery and crockery. So, for ages, gold has been considered as an imperial metal. There was a time when it was used for trading commodities; it was used as money. Then gold was replaced by paper money, but still this gold was backed by gold.
Therefore, every country has to keep the reserves of gold for the strength of its economy. For ages, it has been a belief that gold is such a commodity, which will help you in times of financial crisis. In addition to this belief, there is also a belief that there is no other investment better than gold, as the value of gold will never diminish.
This belief has been proved right during the last few years. For the last few years, the world economy has been hard hit by the credit crunch and crisis. The inflation rate is only increasing. Every country and individual is looking for means to save themselves from losses and to have stability.
All the other modes of investments have proved to have caused only losses except for gold. People who invested in gold have earned profits. The reason behind this is that, throughout the history, gold has reached its high price, and it is still increasing. One reason behind the rise in the price of gold is the decline in the value of dollar. The more the value of dollar declines, the more there will be an increase in the value of gold.
The other reason is that, as other investments were not safe and the prices of gold were rising, most of the middle income population and the investors invested in gold. This trend made China the number one because of its high gold consumption. This trend has also supported the rise in the prices of gold.
The prices of gold have not stopped increasing; they are still surging. Therefore, the analysts believe that the prices will keep on increasing in the year 2010 as well, as there is an expectation in the further decline of the value of dollar. There is a speculation that the price of gold will reach 1500 dollars in the year 2010.
Almost all the analysts from all over the world have the same speculation that the price of gold will rise more in the year 2010, though their speculated value may differ. The earlier months of the year 2010 have proved this speculation true so far, as there has been no decline in the price of gold and the value of dollar is still on the decline. We will yet have to wait for another few months to see how far their speculations have been true.
Source by Jack Wogan
How Analysts Expect the Gold Price to Perform in 2010
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