Main role of gold is the role of the stabilizer of financial markets

It is obvious that, as before, the main role of gold is the role of the stabilizer of financial markets. Gold is to a lesser extent industrial metal, and therefore the price of gold as a result of the crisis has not subsided. It would seem, on the contrary, the price should have risen to the level of $ 1000 / ounce, but a sharp decline in the consumption of jewelry, especially in the large markets of the US and India, which was not compensated by the increased demand in investment markets (in the form of ingots and coins) , Did not allow the price to rise.

The price of gold, as we expected in February of this year, will remain in the range of $ 900- $ 950 per ounce by the end of the third quarter, approaching $ 1000 / ounce in the fourth quarter.

The price of gold will also be supported by the fact that problems with real producers from South Africa and Australia will lead to a decrease in the total gold production in the world, despite their growth in Russia and the United States.

Moreover, the resource of the secondary market (ie gold from scrap) has already been substantially developed in 2008.

Much will depend on the value of the dollar and ways to exit the US from a permanent budget deficit.

If the new government continues to move along the path of pumping economy with printed money, then we should expect a sharp rise in gold prices - above $ 1000 / ounce. So investing in tokens and ingots of gold will never be superfluous, especially in the long term.

We can only say that the price of silver, although it follows gold, is much more volatile, and its growth rates significantly exceeded the growth rates of gold prices over the past five years.

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