Gold and Silver Best Investment

Investors generally buy gold for two main reasons: to financially gain from increasing gold prices, and/or as a hedge or safe haven against any economic, political, social or currency-based crises.

A continued global economic tsunami and the increasingly urgent scramble for an investment lifeline will combine to power gold prices ominously higher and into uncharted territory later this year. This is the consensus of opinion among the CEO’s of a dozen emerging to mid-tier gold mining companies who were recently interviewed by BNW Business Newswire. 

Gold will be trading in the $1,100 to $1,500 range by year’s end.

There are some opinion from economist that associated the Dow Jones price with gold price. They said that ratio of Dow Jones price and gold prices will retest again at 2 : 1 or 1 : 1 base on the 1933 great depression and 1980 the first highest gold price at $800. See The Chart

Today, Dow Jones and Gold price ratio still in 8 : 1 (Dow Jones approx $7750 and gold price approx $926) and gold price at February 2009 had reached the highest level in 2009 at 1.006, almost retest the higher level $1.031. So it indicates huge room for this yellow metal to reach a new high level in this year.

Two major factors base on current condition which will push gold higher:

• The first is that the US department of agriculture's Crop Production Report in October revealed that acreage for staple food commodities such as corn is on the decrease. In the face of increased demand from China, India and Latin America, that this will raise food prices and inflation - and therefore gold prices on the back of safe-haven buying.
• The second reason for optimism is the $700 billion rescue plan for US banks, which was intended to encourage them to start lending again to revive the economy.