The graph shows Krugerrand pricing over the last five years. It means if you bought one Krugerrand in 2004 for $450 it would be worth $1089 today....just five years later. This is a 142% increase over five years.
The only reason for this incredible change is the shrinking value of the US Dollar. Gold and Krugerrands do not change in value. The only change is in the value of the currency used to buy gold.
Nearly two years ago I predicted this continued decline of the US Dollar as a result of the coming housing crisis. It is painful to say, I was right and the buying of gold is your only way to hedge against the current financial mess. Money in the bank is earning about 1% interest. Money in housing is earning negative interest. In 2010 and beyond you can expect that the dollar price of gold will creep up to $1500 an ounce. It would increase higher and faster but the demand for gold among jewelry makers has declined due to recession. You can see the price in the last 18 months has been stalled at or near $1,000. Again this is due to reduced demand for jewelry.
Don't say I didn't warn you. Buy now if you want to hold on to the value of the dollars you have.
The only reason for this incredible change is the shrinking value of the US Dollar. Gold and Krugerrands do not change in value. The only change is in the value of the currency used to buy gold.
Nearly two years ago I predicted this continued decline of the US Dollar as a result of the coming housing crisis. It is painful to say, I was right and the buying of gold is your only way to hedge against the current financial mess. Money in the bank is earning about 1% interest. Money in housing is earning negative interest. In 2010 and beyond you can expect that the dollar price of gold will creep up to $1500 an ounce. It would increase higher and faster but the demand for gold among jewelry makers has declined due to recession. You can see the price in the last 18 months has been stalled at or near $1,000. Again this is due to reduced demand for jewelry.
Don't say I didn't warn you. Buy now if you want to hold on to the value of the dollars you have.
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