Gold crashed through the gate this morning breaking record highs and is currently hovering around the $1270 per ounce mark. How high will it go? No one knows but if you have ever read my previous posts I expect it to go higher, much higher.
The current high is due to investors looking for a safe haven. Dismal manufacturing reports coming out of Europe and a weakening U.S. dollar are to blame. Precious metals is the place to be when the economic forecasts are looking depressed.
For those crying that gold is a bubble waiting to pop, I ask where is the proof? I would agree in the bubble theory if we had the following:
1. Jobs/Low unemployment
2. Strong dollar
3. A Low deficit
4. Stability in the middle east
5. Stability in the world markets.
None of the above make for the case of a gold bubble that is waiting to explode. I foresee some fluctuations but not a bursting bubble. Until some of the items listed above are addressed, precious metals will be the safe haven that investors are looking for.
-Blogging4Bullion
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