Posted in | Gold

Gold: A Bubble Waiting to Burst!

If you thought that buying gold was the safest investment that you could make Macquarie Bank interest rate strategist Rory Robertson, would have you rethink that decision. He considered gold a bubble waiting to burst.

Gold Key, weighing one kilogram is used to access a ten digit account number which is known only to the bearer of the Gold Key.

An ounce of gold cost USD $260 in the year 2001, while in 2010 the same ounce of gold costs USD $1250. The steady march up of gold prices over the years does little to convince Rory Robertson that gold is indeed a safe and sturdy investment.

He accepts that the price of gold may rise to four times its current value before the bubble bursts, but burst it will. His option holds little truth for Jeff Clark, the primary author of Casey’s Gold and Resource Report, a guide for the small investor.

According to Jeff Clark investment in Gold is a solid investment and that is why countries like Russia, China and Israel continue to increase their gold reserves. China is the largest producer of gold in the world and buys all the gold that it produces.

The World Gold Council shows that while central bank sales remain depressed in the first quarter, Russia, Venezuela, Philippines and Kazakhstan all bought gold in the corresponding period. Maybe the gold bubble will eventually burst, but it is not happening in a hurry.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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