I'm extremely bullish on gold and silver right now. I expect gold and silver prices to rise at least 25% by this time next year, probably more. As I write this gold is up $22.20 an ounce at $857.10, and silver is up $.53 an ounce to $11.16.
So here my prediction, by December 16th 2009 the spot price for an ounce of gold will be up at least 25% to $1,071.38, and silver will be up at least 25% to $13.95 an ounce. That is the minimum I believe those prices will go up in terms of US dollars.
Today the federal reserve cut interest rates to zero. I would say this is the beginning of the end for the US dollar, but it had already begun. Expect inflation to start hitting us hard next year. We could easily see the dollars value drop 25% over the next 12 months.
The word on the street is that the value of gold and silver is being suppressed. Real gold and silver value is supposedly much higher than its current spot price. The high prices in gold and silver bullion, as well as the massive shortages, give credence to the belief that real gold and silver prices are well above spot. Also there is word that the comex will default, which would also play into gold and silver prices skyrocketing
As we start to see double digit inflation of the US dollar I believe we will see a massive move into gold and silver. Supply is fairly low but demand will be very high. The supply factor, coupled with a continually devaluing dollar, will inevitably cause gold and silver prices to skyrocket. Keeping your savings in anything else, dollars, the stock market, or real estate, is far too risky. But gold and silver will be solid hedges against the hyper inflation that will soon destroy the dollar.
I have decided to insert a gold and silver daily spot price gauge into the front page of my website. Precious metals boom here we come!
