Phoenix, AZ (WiredPRNews.com) History was made today in the trading market. Gold reached an all time high of $1604.70 per ounce from its low of $1478.30 at the beginning of July. That’s an increase of $126.40 in just a couple of weeks. One might ask, what is sparking this increase? Due to the current situation with the European debt crisis and the issue of the US debt ceiling being raised gold is being purchased as a safety net and or security for some people.
Today the bull market is strong as ever and technical analysis is fueling the fire. What’s important to know today is gold has been rising in value for the past 10 years going from $252/oz to its current price of $1604.70/oz and it doesn’t look like its going to stop anytime soon.
At some point though the gold bull market will come to a halt. How you ask? We can speculate it can happen one of three ways: Reform becomes a serious matter to all governments worldwide, a bubble formation occurs due to the public being overwhelmed and scared which causes extreme investments (just like the real estate boom in 2004-2005) or if a gold standard is implemented again meaning gold would not be needed for personal uses due to currency being able to be fully converted into gold.
The main goal is to get involved while the price is still increasing. Some might ask, when is the right time to buy gold? The answer to that is being long term and actually having physical gold. Usually the price will fall in the summer making it the best time of year to buy although this summer is different. Typically you don’t want to time the markets because then it is considered a trade. Most people acquire physical gold to protect their assets not to trade. Buying gold and holding onto it during the trend cycle will allow gains to be made during this time.
You want to buy gold before any of the above-mentioned options occur. That being said, the sooner you get involved the better. For the past 10 years gold has been closing higher than what it was the previous year and it currently looks like it is going to do it again this year. So if you’re asking yourself did I miss my chance? I would say no. If you look back and evaluate the last bull market ranging from 1970-1980 you would see that gold increased over 2400%. In today’s bull market there has only been an increase of 536%. Nobody knows exactly what’s in store for us but it looks like gold has a lot of potential and would be a wise investment to act upon.
ITM Trading is a fifteen year-old precious metals firm specializing in physical gold, silver and platinum products used as a safe-haven as well as growth. We can be reached at 1-888-OWN-GOLD or www.itmtrading.com.