Will Gold Highs Continue in 2011? It is the beginning of 2011 and the new year is bringing with it optimism about the U.S. economy that hasn’t been seen in a very long time. The stock market surged in early January 2011 and it seems that traders are looking wistfully at the New York Stock Exchange’s daily numbers and thinking “Perhaps it’s time to get back in.”
But what is seen in the stock market reflects differently in commodities, and specifically precious metals and gold. It was more than bleak feelings about the stock, housing and employment markets that sent American consumers home from the stores, drove down home and car sales and drove investors toward gold, which is viewed as one of the world’s safest investments. There were troubles, bubbles and bad faith dealings which we’ve been struggling to put behind us for several years. So, are lovers of the yellow metal ready to put aside the hand-wringing and get back to confidence in the American dollar?
There are numerous predictions out there. The gold futures market ended the year at over $1,400 per ounce. That’s up 29.7 percent from 2009. It’s hard to anticipate that type of explosive growth could be sustained. Indeed, the price has already fallen below the $1,400 mark.
Still, there are indications that gold may be about to take some hits. Some Wall Street strategists predict that gold and other commodities will slip by the end of this year, with gold still above the $1,300 mark, but nowhere near the $1,400 mark where it began 2011.
We should point out another bright spot historically: even when economies recover, gold doesn’t necessarily lose any of its value. The prices could hold without increase, while the dollars at play in the economy gain in value.
Of course, the key to successful use of gold in your business is to turn it over quickly. That way you can purchase more gold and get back to being part of what makes the market optimistic on an ongoing basis, which is doing business. We hope you had a great holiday season and look forward to a highly productive 2011. We’re a B2B company specializing in remelting precious metals at your convenience.