- Weakness in the U.S. dollar: The value of the dollar has fallen 35% since 2002 and 9% in the past 12 months. Meanwhile, the national debt is approaching $12.5 trillion and the 2010 budget deficit is projected to hit a new record: $1.56 trillion.
- Economic uncertainty: Investment markets worldwide continue to be on shaky ground. Gold is considered the most respected store of value. It is the ultimate safe haven and the least risky of all investments.
- Supply constraints: World gold production has fallen every year since 2001. Meanwhile, central banks have now become net buyers of gold after over 30 years of selling.
- Growing investment demand: Global investment demand has more than tripled in the past few years and continues to spike higher.
- Cyclical bull market: Gold prices are in a long-term cyclical bull market that will continue to push prices higher. The price of gold has increased over 150% while the Dow Jones has remained flat in the past five years.
The Definitive Guide To 2010 Gold Stocks
Source: Luke Burgess, istockanalyst.com (2/8/10)
There's no doubt about it... Everything points to higher gold prices this year
There's no doubt about it... Everything points to higher gold prices this year: