Sahit Muja: Gold prices rose to $1,773 an ounce today on hopes of economic stimulus in US, Europe and China. The US dollar compared to gold has declined more than 100%, gold was $ 815.00 per ounce in Nov, 2008. The Obama administration continues to expand its debt level in a very major way.
The falling value of the dollar, is slashing the return on investments. The U.S. dollar devaluation has a major impact on all of us, primarily hit seniors and those living on fixed incomes and poor become poorer.
The gold is a safe haven from the inherent risks in the global pyramid scheme money system. Gold is a safe store of value. Paper debts, paper assets, paper currency, they can all default or deflate tremendously in value.
Paper is the hedge, not gold. When I look at the miserable balance sheets of the European Union, US, UK, Japan and many countries, I know that gold is safe investment..
If the US government were a corporation, it would be bankrupt. Gold is certainly not a dangerous investment relative to others. Real estate is still overpriced as are most stocks by many metrics.
There is some of $31 trillion debt owed by EU the USA. The only way out for the mega-debtors is to inflate the euro and dollar – so inflate they will.
The Fed and other central banks can inflate away the value of fiat money, and governments can print more money.
The Federal Reserve has kept U.S. interest rates at virtually zero, with no sign of a hike on the horizon, thereby lowering the opportunity cost of buying gold.
The bankers have made speculators of us all. Thanks to the Fed, the stock market is once again all bubbled up and ripe to pop for the third time in 12 years. Housing prices still have not returned to historical multiples of income.
Albanian Minerals expects central banks in China, Russia, India, Saudi Arabia, Canada, EU, US to fuel demand for gold. China is stocking up on gold as it divests itself of its dollar and euro holdings but also is encouraging its increasingly affluent citizens to buy gold.
China will only be buying more gold in the future as it attempts to divest itself of some of its estimated $3.2 trillion in U.S. dollar reserves
To find new deposits of gold, mining companies must invest more in infrastructure and drill deeper into undeveloped areas to find the last remaining of gold.
Albanian Minerals expects that gold prices and demand is expected to increase from lots of factors, from increase in the world population and the decline of the gold production, from devaluation of currencies and geopolitical problems.