Gold Going Higher and Higher

As fears mount that global markets are no longer safe, investors are turning to gold as insurance in case the economy collapses, and as an investment. Stock markets are extremely volatile as we’ve seen over the past few weeks, unemployment is rising, prices of food and essentials are going up, and gold is the one safe haven in the midst of all this turmoil. This week, the price of gold went as high as $1881 per ounce which marks a 7% increase in this week alone and a 25% increase since July of this year.

Since my last article and video on August 7th, gold was at $1666 an ounce and closed this week at $1851, an increase of nearly $200 in just under two weeks. I have been encouraging my clients to buy gold and silver now, even at these prices because it looks inevitable that the price of bullion is going to go considerably higher. The clients who asked me when gold was at $1200 “is it too high to buy now?” are now very thankful that they went in at that price. The same can be said today. It’s not too late to buy now. Central banks are buying more gold than ever. According to the World Gold Council, they purchased more than four times the amount this quarter compared to a year ago. That should be telling you something. They don’t invest in anything that they don’t think is going to increase in price.

The US economy is headed into an even deeper recession as companies like Bank of America, Sears and UPS continue to announce layoffs. In Europe, the ongoing debt crisis is pushing the markets into a downward spiral.

Morgan Stanley along with other analysts expressed their concern that the US and the 17 countries in the Euro were hovering close to a recession. In my view, they are already in recession and heading dangerously toward a world depression. Because of these concerns, gold will continue rising in price for the foreseeable future.

As I have been predicting, $2000 an ounce for gold is just around the corner. At some point, when there is real panic in the markets, the gold price could go parabolic and reach $5000 and more per ounce.

Silver broke through the $40 mark and saw an increase of 8.5% this week alone. And for silver, $50 is very close, with $100 being a very conservative estimate of the price it will reach in the not too distant future.

Many people ask me how they can invest in gold. If you live in a big city, check out your local bullion dealer. They buy and sell gold and silver coins. Go along and see how much they are charging above the spot price for gold. Depending where you live, you can expect to pay a premium of 3-7% above spot for your gold, and a little more than that for silver.

If you don’t find a local bullion dealer you feel comfortable with, or if you live in a small place, then check out various dealers online.

I am often asked about storage places such as GoldMoney and Bullion Vault. On the plus side, they are excellent for the liquidity they provide and you are able to trade 24/7 and have easy access to your funds should you require them. On the minus side, they can only continue to trade if the internet stays alive, and if we don’t have any nuclear disasters, and if the technology survives any major earth changes. Keep in mind that whenever you have anyone else store your gold, in the event of an emergency, you may not be able to reach them to sell your gold or to have them send it to you. There is always that risk when someone else stores your gold. However, these companies do have a place and as long as you are aware of the risks, then that might be an option for you.

If you are unable to store your metals yourself, have a trusted family member or friends store them for you, or consider storing them with a depository in the country in which you live and also somewhere outside of where you live. That way, you haven’t got all your eggs in one basket.

As I have being saying for the last five years, the price of gold and silver will go up considerably, and I feel strongly that this is still the case right now. Don’t miss out on this opportunity to be able to protect yourself. If you don’t have any precious metals, then do your research and get some. If you already have some, buy more.