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Wednesday, September 22, 2010

Gold and Silver on the rise!

Gold and Silver on the rise!

What I have heard about this from many sources is that Gold may be set to go over $2000 an ounce and that Silver may hit as high as $200 an ounce.
I know that this is speculation but with the economy the way it is today and the dropping value of the dollar this does seem viable.
Also China is buying a lot of Gold and Silver and they are really pushing their citizens to invest in them also. Can you imagine if most of the people in China start buying Gold and Silver what that could do to the prices of these metals? They could really skyrocket.
I am not saying that this will happen, but a lot of research that has been done on the topic really makes sense to me.

Check out this information from Silver

More than 95 respected economists, academics, analysts and market commentators are of the firm opinion that gold will go to $2,500 and beyond before the parabolic peak is reached. In fact, the majority (55) think a price of $5,000 or more - even as high as $15,000 – is actually more likely! As such, just imagine what is in store for silver given its historical price relationship with gold!

Here is some more information from Money

Once upon a time, the Chinese government forbade ownership of all precious metals.
But now, the ban has been lifted. In fact, China just introduced silver bars for investment. And now, state-run China Central Television (CCTV) is running a campaign encouraging the population to invest in silver.
That means there are over a billion potential new silver investors hitting the market. This is especially significant when you consider the average savings rate in China is 30 to 40%.
But the flood of new Chinese silver investors isn’t the only factor driving up silver prices. The increased use of silver in everything from solar cell technology to medicine is pushing up prices as well.

Take a second to think how much of an impact this will have on the silver market – the sheer amount of people, and at such a high rate of savings. Then you factor in Chinese demand for things silver is need to make – cell phones, computer, batteries, silverware and jewelry. China’s silver consumption already accounts for 70% of the global total of industrial use and its middle class isn’t even close to reaching its spending potential. What’s more, those aren’t the only reasons analysts are predicting silver prices can reach as high as $100 this year and $250 by 2015.

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