Re: Gold Price predictions
A lot of predictions in the years gone by had put gold at $2000 an ounce by Dec 2008. That deadline came and went, and we actually saw gold dip to below 800 an ounce, before jumping back up.
It is not in any country's favor for gold to go that high. Gold is a commodity. Countries dont like to liquidate their gold in favor of cash, so a high priced gold inventory doesnt do much for a country. America will continue pumping in cash in order to keep cash markets liquid, and that has already resulted in what has been termed as the end of the recession. As a result, we are seeing a stronger dollar, which will be followed (in the long term) by a weaker gold.
The gold that trades on the international commodities markets is 24 karat.....whereas the gold you buy in gold shops and markets is 24karat, only if bought in the form of biscuits. So if you want to invest in gold, make sure you buy biscuits, not jewelery.
Gold ETFs are for US or europe based stock traders. There are no ETFs in Pakistan. ETFs (exchange traded funds) are paper equivalents of gold, and understanding their correlation with actual gold is tricky, since each ETF uses different formulas and parameters to determine the price of an ETF.