At this point in time, a new open chapter of the gold rush is already arranged to start now that gold prices have climbed up to $800 per ounce. A declining currency, tough physical demands, geopolitical risks, central bank dealings, concerns about inflation and geopolitical uncertainties are only a handful of the most important influences that aggressively drives the gold bull.
According to Reuters, financial experts stressed out that, "Gold is not a mainstream investment yet, because it's seen as difficult to understand."
"The era of 'peak gold' has arrived. Try as they might, miners cannot find enough ore at viable costs to replace their fast-depleting reserves, even if they dig miles into the center of the earth," says the London Telegraph.
"The relatively subdued interest of the investing public, if not the investment newsletters and columnists, is in fact good news for those long the metal. It means there are a lot of people left to buy the stuff, which is not the case at bull market peaks. So even at about $800 the ounce, the real gold bull market has not begun," reports London Financial Times
On a daily basis, however, it becomes more convenient for the average guy to realize that his paper dollar bills are starting to deteriorate in value. And even worse, his daily needs such food, gas, and oil, gold, silver and the majority of other substantial resources entirely charge him with extra large charges.
"Gold at 28-year high", yet often fails to mention, that after discounting prices for inflation, gold must climb above $2,150/oz., almost three times the existing price, to arrive at the earlier 1980 price peak, according to Headlines.
According to International Business Editor for The London Telegraph, Ambrose Evans-Pritchard, "In today's terms, $850 gold would be equivalent to $2,000 an ounce, suggesting that the current six-year bull market in precious metals may have much further to run."
"Global commodity companies believe that gold prices will rise for years to come, eventually reaching at least $2,000 and it will probably go even higher. Investment experts say gold is the best commodity to invest in because it has stood the test of time," reports Nandita Jain of Commodity Online.
In conclusion, these precious metals are now almost one third of the track in the direction of achieving an accurate new high. $800 per ounce gold in 1980 equates to $316 per ounce gold today in 1980 dollars using the official government CPI inflation adjuster. Gold remains the purchase of a generation rather than being almost a market peak. In the following years to come, this case shall be realized and after all has been said and done, the power of gold will still prevail.
