As The Dollar And The Euro Continue To Collapse, How High Is That Going To Push The Price Of Gold?
Right now, the global financial system is facing a crisis that is really unprecedented. The reserve currency of the world (the U.S. dollar) is collapsing and the second most powerful currency on the planet (the euro) is also collapsing. As the major paper currencies of the globe crumble, the hunger that investors around the world have for gold continues to grow. Today, the price of gold hit an all-time record of $1607.90 an ounce. But that record surely will not live for long. The truth is that gold has been steadily climbing for quite some time now. A year ago, the price of gold was hovering around $1200 an ounce and and many “mainstream economists” scoffed at the idea that the price of gold could go significantly higher. Well, nobody is laughing now. As colossal debt loads continue to crush both Europe and the United States, the euro and the dollar are going to continue to collapse. There are going to be more bailouts and central banks are going to be doing more money printing. So how high is all of this going to push the price of gold?
That is a very good question.
At the moment, the price of gold is experiencing its longest rally since 1980. As the financial markets become increasingly unstable, investors are looking for security, and security is not to be found in anything denominated in dollars or anything denominated in euros.
The price of gold is up 13% so far this year and appears poised to go even higher. The more global financial markets get rattled, the more attractive gold is going to become.
The sovereign debt crisis in Europe seemingly gets worse by the day. All of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) are a complete and total financial mess. Either the EU is going to have to bail out these countries continuously or the EU is going to have to find a way to start printing a whole lot more money. Whatever happens, the reality is that the debt crisis in Europe is not going to be solved any time soon.