Everyone is wondering what’s going to happen with gold coins and gold bullion in 2011. Thus far, the price of gold has stagnated in 2011. The peak was hit in December and then slumped down during January. It went up in value for a while but then decreased again. Now it stands, as of February 16, 2010, at $1,378 and with a four-day streak of gains. What is happening with gold coins and gold price and why hasn’t the new peak—predicted by many expert forecasters—been hit yet?
A lot is happening right now, even while the world stands still trying to figure out the next move. The economy is getting worse in the U.S. as well as in Australia, Ireland and other nations. There is turmoil in the Middle East because of anti-government protesting. All the while the U.S. economy goes haywire, having good weeks and bad weeks, which automatically fluctuates the price of the U.S. dollar—and thus the price of gold and gold coins in general.
Make no mistake about it—gold is going up in 2011, the question is how much. Some experts have gone out on a limb and suggested that gold will move up to $2,000 per troy ounce. Is this an exaggerated claim? Not necessarily. It’s true that suggesting gold will suddenly spike to the price of platinum is a tad unrealistic—unless of course a major event happens. If a major event happens (such as a terrorist attack, a major catastrophe, a major change in government) etc. then it’s quite possible gold will shoot up to a new peak.
However, until that big event happens gold will likely continue to gradually increase in value, as the U.S. dollar slowly but surely plummets. The question then is not, if gold price will spike but, when will a major event happen? Is 2011 destined to be a year of waiting or a year of major change? Thus far there has been civil unrest in the Middle East, and the same climate could potentially erupt in the U.S. if the unemployment rate increases.
The question though is still if and when. For now, gold price maintains its value, still holding strong at over $300 PTO above what it was just a couple of years ago. Now is the best time to invest in gold metal and gold coins. Investing just 10% of your portfolio in precious metals is a smart way to stay one step ahead of the economy but without taking that extra risk.