Top 10 Reasons Gold Is Going Higher in 2011

Gold prices set last week a new high of $1,424, over 35% higher than its low earlier this year. This bullish trend ending with heavy selling on Friday, has lead many investors to assume that gold has reached its peak. However, the bull market is far from over and prices will go even higher into 2011 for all of the following reasons:


10. Major Global Investment Banks Also Expect Higher Prices. German and French financial giants Commerzbank and Societe Generale recently boosted their 2011 gold forecasts. In the U.S. the outlook is even more positive as JP Morgan recently said it expects gold prices to remain above $1400 throughout 2011 and Goldman Sachs expects gold to soar as high as $1650.


9. Billionaires Still Bullish on Gold. As we reported earlier this
year, a majority of billionaires surveyed by Forbes had favorable opinions on gold prices. There's one billionaire, Thomas Kaplan, who committed a majority of his hedge fund's assets solely to gold investments. John Paulson, recently stated that he has 80% of his assets in gold. However, the world's richest man, Carlos Slim, is literally digging for gold with his company's subsidiary, Grupo Frisco, which plans to open a handful of mines this year.


8. India's Gold Imports Increased Despite High Prices. Indian gold jewelry demand this Fall has remained robust even though analysts expected high prices would deter buyers. Gold's recent thrust above $1400 coincided with the peak of India's Diwali religious festival which has historically spurred jewelry purchases. Even amidst record prices, India imported over 43 tonnes of gold in October, up 19% from 2009.



CONTINUE >>