Gold To Hit $10,000 per Ounce In 2012

Any serious investor must consider the huge opportunity that gold represents. Over the last 10 years gold spot prices have consistently out paced major investment markets around the world. Not only has gold been a source for major profits for savvy investors but the risk posed by any investment have all but been mitigated by gold's history as a safe haven for wealth.

The dynamics supporting gold's rise to $10,000 per ounce include but by no means are limited to:

1. The fact that in 2011 there has been relatively little gold mined. Gold production has actually dropped over the last 10 years
2. More demand - In China the government actually recommends to its people that they hold 5% of their assets in gold as a hedge against inflation.
3. Central Bankers are for the first time in history becoming net buyers of gold on the open market.
4. Countries such as Venezuela, China and India to name a few, are seeking to acquire or repatriate as much gold as they can.
5. Both China and India are now buying oil from Iran and paying for it in gold instead of US Dollars despite sanctions against Iran by the E.U. and U.S.
6. Private demand for gold has multiplied. Today, a man riding a camel in the Sahara Desert can use his Iphone to buy gold.This has meant that anyone any place on the planet can now be a buyer of gold.
7. In Kuwait and Abu Dhabi gold bars are sold in vending machines in hotels and airports.
8. As the US Dollar becomes less valuable, gold prices go up. Central banks in every country have all attempted to "print" their way out of financial hardship. The result is that their currencies have become less valuable.
9. Artificial market manipulation to keep gold prices relatively low has created growing demand for a more stable medium of exchange.
10. Huge American debt and the potential for collapse of the Euro and the Dollar have further pressured precious metals to rise in value.
11. Delivery dates for physical gold have increased as demand outpaces production.
12. Experts in the field predict gold prices in the thousands of dollars. They suggest that in fact those prices should now be as high as $3,000 to $5,000 per ounce and will continue to climb.
13. Outside manipulation to keep gold prices down and interest rates low in an attempt to make stock market investments seem more attractive has only increased the demand for gold. Sooner or later the market will have to correct itself resulting in a drastic jump in spot prices.
14. There is some evidence that gold contracts have been illegally sold with no means of delivering physical gold. This means that as markets become more desperate to meet their contractual obligations the spot price of gold will rise, thus creating an out of control feedback loop making it more difficult to acquire the requisite gold. Use of printed currency and then swapping at rising interest is a two bladed sword. This further pressures gold to seek its natural equilibrium relative to other market indicators. In other words, gold prices will rise.
15. QE3 seems to be a certainty thus putting more pressure on gold prices as the Dollar continues to devalue.

Technical analysis of gold prices support our assertions. At this point the question is not about whether gold will go up, but when. Obviously there are a lot of other issues at stake and there appears to be heavy outside manipulation of the market. But what does the Chinese government know that we common folk do not? They are buying gold by the ton on a weekly basis and using cheap American dollars to do it.

Now that the Iranian War is on the table again, it is only prudent that investors protect their assets and grow them if possible. There are 4 basic reasons that a person invests:

* To Increase Cash Flow
* To Increase Assets
* To Decrease Taxes
* A combination of All Three


Gold meets all the elements of a wise investment and more.

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