October 7th, 2009 5:44 am EST
Gold Continues To Soar As Investors Fret About Inflation
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Moderate inflation over the coming years? Deflation perhaps?
The price of gold begs to differ.
After breaking an all time high of $1,045 USD on Tuesday, gold has hit yet another high early Wednesday morning.
As of this moment, the spot gold price has a bid of $1,047.60, and seems to be trucking steadily towards the $1,050 mark.
Gold bulls are reveling in the fact that their favorite commodity has sailed past the $1,000 mark and is currently soaring into uncharted territory.
Despite recent reassuring comments from various Fed officials and Wall Street analysts, many investors remain worried about the prospects of high inflation in the United States.
The Federal Reserve is being forced to manufacture money out of thin air in order to purchase new debt offerings. This act is inflationary as it adds to the money supply, and gold is a hedge against inflation.
If you want to hedge against inflation, then one of the best things to purchase is gold.
How high will gold trade over the coming years? Some very smart traders, ex-hedge fund managers and market commentators believe that it could trade as high as $5000/oz.
If this happens then inflation will have its icy claws firmly clasped around the heart of the US economy. Let's hope that this doesn't happen, but it almost seems unavoidable at this point.
Source: Kitco
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