2009 - A Golden Opportunity For Gold Investing
By Jeff Sneeringer
If there was ever a perfect year in the history of the world to be the holder of investment gold, 2009 is that year. Here are two reasons why...
The first thing to watch is the bond market. When the stock market was dropping in the last quarter of 2008 many investors jumped onto the bond-wagon. Even though the bonds were offering record low yields the swarm of buyers pushed bond prices up.
But, since the start of the new year bonds have already lost about 7% of their value. Not good news for those who jumped off the stock market wagon and on to the bond market wagon!
We are already hearing the government's plans to dump trillions of dollars more into bailing the U.S. out of its recession, which will create more bonds they will need to unload. Add that to the likely possibility of foreign countries getting cold feet about investing in U.S. Bonds and you have a scenario that may have bond prices dropping well into the double digit percentages.
This event will surely cause the U.S. Dollar to fall faster than the ball in times square on New Years Eve!
What happens when the value of the dollar drops? The price of gold goes up.
The other major factor that will contribute to the increase in the price of gold is the ole supply vs demand ratio.
We have already seen how additional demand caused by safe haven buying can drive up the price of gold. Although safe haven buying will certainly increase when the bond market bursts there is another, and possibly bigger reason. That is the end of the short lived stock market rebound we are now seeing.
A common sense question you may want to ask yourself...is it a good idea to invest money in companies who are going under?
We are seeing record numbers of retailers reporting huge declines in sales and closing their doors. Manufacturing companies are laying off workers because orders are dropping. As a result, hundreds of thousands of people are losing their jobs, which has created a financial crisis because people can't pay their mortgage payments.
We all know, these are the same companies that make up the stock market. As these companies, one by one, announce their hardships, investors will be jumping out of the stock market faster than fleas from a dog with a brand new Hartz.
Gold will be the only safety net left to jump into!
Of course, the two previous scenarios will cause the price of gold to increase drastically. Some predict $1400/oz, some say over $2000/oz.
Either one makes 2009 a gold-en opportunity to own gold!
Jeff Sneeringer, author of the report "How To Buy Gold Low", is an expert on the subject. For over 20 years he's been buying gold below 50% of spot price. In 2008 there was over 1000 metric tons of gold acquired at prices far below spot, using the very same techniques Jeff teaches in his 26 page report, How To Buy Gold Low. In regards to what is happening in the financial world today, Jeff always says, "The new golden rule is - He who has the gold rules, especially when you buy low." Article Source: http://EzineArticles.com/?expert=Jeff_Sneeringer
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