Gold Price Breaks Record High of $1,800 per Ounce, Headed Towards $2,500 per Ounce – Reports Certified Gold Exchange
NEW YORK, Aug. 11, 2011 /PRNewswire/ — For the first time in history, the gold spot price has surpassed $1,800 per ounce. This comes as a direct result of increased safe-haven demand from American investors after the US Government raised the debt ceiling and mentioned yet another quantitative easing package. According to the latest economic data, gold is benefiting from a basket of fear factors that are pushing investors away from dollar-backed assets in exchange for a safe-haven. The current flock to gold has caused the Certified Gold Exchange and J.P. Morgan Chase & Co. to update their 2011 gold price forecast up to $2,500 per ounce, a significant 39% increase over their original forecasts.
Judging by the rapidly increasing physical gold demand in the United States, Americans are scared. They’re scared that the economy is a lot worse than government statistics say it is. Investors are flocking to gold because it is a defensive asset that is being pushed higher by risk aversion. As the old English proverb says “When we have gold we are in fear, when we have none we are in danger.” Over the past decade, gold has outperformed nearly every traditional investment, increasing in value more than 700% as the United States economy contracted significantly.
John Halloran, President of the Certified Gold Exchange says “Investors are opening their eyes to the harsh reality that our economy is not recovering. Inflation is growing rampant, unemployment continues to rise and economic growth has halted. During difficult economic times, gold usually thrives because investors use it has a safety hedge from losses that become common with dollar-backed investments.” When asked about the future of gold prices he replied with “The sky is the limit with gold. It has increased in value more than 7,500% in the past 100 years and it’s not stopping now.”
Certified Gold Exchange, Inc. (CGE) is North America’s premier precious metal trading platform backed by a solid PriceMatchPlus Guarantee. CGE’s team of highly qualified, industry leading professionals conduct expert analysis and research on behalf of their clients. The Certified Gold Exchange provides both institutional and household investors with real-time quotes and instant liquidity when buying or selling gold, silver and platinum products. For more information, call CGE at 1-800-300-0715 or visit www.CertifiedGoldExchange.com today.
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SOURCE Certified Gold Exchange