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Six Reasons Gold May Double by End of Year
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Here are six of the most significant reasons we believe gold may double by the end of 2012:
* The more November's presidential election draws closer, the more news media reports will tell us that President Obama is running at a dead heat with Republican presidential contender Mitt Romney. Nothing sells news and its advertisements like an extremely close race and we'll hear it to no end no matter what the spread is. The more the private sector hears this, the more they'll tighten their belts which will keep unemployment high, overall spending low and gold steadily increasing in value.
* The panic of the December 12th "end of the world" crisis, which is expected to last until December 13th oddly enough, will keep gold on the steady rise. The prophecy is reported to exist not only in Mayan calendars, but also in many religious beliefs as well. Outwardly, most people criticize “those weirdo cult lunatics" for believing in it, but we all have some level of insecurity related to the phenomenon in the back of our minds and it will continue to grow as the fateful date draws near.
* Germany, who continues to economically outperform their European brothers and sisters, sees gold as the silver bullet that can help many of the struggling countries right their financial woes. So much so that they're willing to extend themselves for countries that have a good bit of it socked away. Of course, the Germans want to use each country’s' gold as collateral, but only to partially back these measures they’re calling "The European Redemption Act."
* The euro continues to drop in value and not only the Germans, but many are considering gold to be a good way to strengthen the euro. The more the euro decreases in value - the closer it gets to being replaced completely by a gold-based economic system. As remote as this possibility is, it still exists. And the more Europe fails to take the bold measures necessary to turn around its failing economies - the more likely this possibility becomes and the higher in value gold will continue to climb.
* As European countries find themselves financially and economically tapped and begging for aid, the worse our economy gets. And the more that happens - the more gold increases in value. Just last week, US unemployment numbers increased one tenth of one percent and gold immediately shot up one hundred dollars per ounce.
On a side note:
Make no mistake - President Obama's "shovel ready jobs" are indeed shovel ready. To begin with, it takes a great deal of shoveling to disburse the volume it takes to convince a government to spend a trillion dollars of money they don’t have. Then there's the shoveling required to spread those hundreds of billions of dollars to places where they'll never be seen again.
And now, after the dismal failure of the last trillion-dollar jobs bill passed a couple of years ago, they're at it all over again. This time they're trying to get teachers' and firemen’s support to help get the bill passed by promising the shovel ready jobs to them. Make sure to take notice of the big rush they're in to get the bill passed well before November so the money can be spread around before election time.
But this article isn't about politics; it's about our economy and the likelihood of gold doubling by year's end. With that in mind, we've saved the most significant reason for last. Here is our sixth reason we feel it likely that gold will double in value by the end of the year:
* Gold will most certainly increase at some rate as the year progresses, and the media will exaggerate every step of the way. As disillusioned investors back away from dismal financial market performance - they'll cautiously pull their investments out and safeguard them by placing them into gold. Combine this activity with the solid fact that many countries are trying to buy as much gold as they can lay their hands on.
When one considers that there's only a finite amount of gold available and when demand soars over a relatively short period of time - price always increases to the highest-level individuals are willing to pay. The enormous investment migration currently being forecasted combined with the greatly increased demand of gold will most assuredly cause price of gold to increase exponentially as the year runs out. …Up, up and away!