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Keep Buying Gold

The reasons to keep buying gold 13 November 2009 when as the world economy has begun its recovery after the historical crisis stage, gold still shines against all odds and going for more. The ounce of gold already surpassed the US $ 1,100 dollars and connoisseurs are still correcting their estimates upward. Goldman Sachs (NYSE:GS), just place the value estimated at US $1,200, conditioned that the value of the dollar stays low in terms of the rest of the international currencies. Will be USD 1,200 per ounce the maximum level that can reach the gold? There are elements to think that not and that can continue to grow beyond this limit envisioned by Goldman Sachs. In order to have an approximation of the potential to increase that has the price of gold, the first thing we must do is relieve the factors that can continue upward. The weakness of the dollar is always the first reason mentioned. The Economist from Spain, reproduced the following opinion of Commerzbank: while the dollar continue its bearish trend, is very unlikely that the price of gold down significantly. This is a very simplified vision of the factors influencing the price of golden metal.

In relation to the question of the dollar worth making a distinction between nominal and real parities with respect to the rest of the major currencies. In this sense, even though the dollar is at its minimum levels against major international currencies, the highest rate of inflation in the last time (and also expected) in the American economy, reduces the real exchange rate depreciation to the United States, which can make us think that there is still a considerable margin so the dollar continue losing value against the rest. And logically that the weakening of the dollar, which is expected, keep, helps the rise of the price of an ounce of gold, but there are other factors that also have their share of explicatividad in this phenomenon. Such as Ainhoa Gimenez de Bolsagora also pointed you to an increase of the demand for Asian countries by the hand of its economic recovery.