By now I expect my loyal readers to see that gold is not a bubble and gold price is not going to go anywhere but up. Some time ago I wrote about how Gerald Celente asked his subscribers to pay close attention to the gold price during summer. He had said that if gold price went beyond $1,260 an ounce, we should be prepared to see the next all-time high which is $1,300. Only within days after hitting the $1,260 mark, gold and silver price has achieved several all-time highs and created its newest record at $1,298 an ounce (gold) and $21 an ounce (silver).

The reason for rise of gold price is not because gold went up in value but because the world’s fiat currency is starting to fail and paper money is on the way to be worth only the paper it is written on. The combination of enormous debt, the endless printing of money and the failure of the Federal Reserve makes it impossible to stop inflation and stop the increase of precious metal price. When hyperinflation is here, and it will be very soon, oil and food price increases will follow.

However expensive gold price may seem to you now, the price is not as high as it should be. Greece is currently trading gold at $1,700 already which is the real price of gold if it was not manipulated. Even with the manipulation, CEO of the Trends Research Institute, Gerald Celente, forecasts that gold price will hit $1,500 by the end of this year or latest by the first half of 2011. However, the gold price surge will not stop there. It will continue to rise substantially higher and higher in the next few months to come. This is agreed by Jeffrey Nichols, Managing Director of American Precious Metal Advisors, who said in a speech to the SPC Precious Metal Company Seminar in Bangkok, Thailand, on Sept 13, 2010 that gold price will likely to reach $2,000 eventually $3,000 or even $5,000 an ounce. Imagine if JP Morgan lifts up their manipulation of gold price just as they are doing now with silver.

But no matter how gold rush in other continents is happening right now, people in western countries are still either totally asleep or totally ignorant of the importance of investing in gold.  Compared to other markets, gold is still a very small market in the whole world. However, in Asia, it is becoming a bigger and bigger market. Even a survey by a research company Ipsos reported at the end of July 2010, announced that Asian investors are most likely to buy gold at least until the end of the year 2010. China, India and South-East Asia are now hungry for the yellow metal and buying from this part of the world will continue to increase. Asians have been buying gold not only now but for the whole millennial. Generation after generation Asians have been doing this because they do it as a traditional form of savings and also investment.

In the past year, central banks were seen to be shifting from the US dollar to gold because of the lack of trust towards the greenback. Thailand announced last week that they bought several million ounces of gold. The week before it was Bangladesh buying gold. According to Jeffrey Nichols, there is a growing list of countries that are buying gold as a substitute for the US dollar. Because of this the US dollar will continue to lose its value. While the US and European countries are not going to “shift into gear and move into other assets”, such as precious metal, Asia will continue to grow their economy and do even better than the rest of the world. (Source: Bloomberg.com)

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