If you have not taken steps to position yourself to take advantage of this move, now is the time to buy gold. It is better to be a few months early, than a day too late.
Many would be aware that gold prices recently hit an 18 year high in US dollar terms, mainly due to the appeal of gold as a safe haven in times of economic uncertainty. However, gold investment experts highlight the significance of gold breaking out against all major currencies and not just the USD.
In October 2005, gold prices reached a 12-year high in Swiss francs, a 14-year high in yen, and a 9-year high in sterling.
Gold prices have just broken out in Australian Dollars, one of the worlds strongest currencies. The Australian Dollar gold price hit a 17 year high of A$630.60 per ounce last week. All that remains now is for the Canadian Dollar Gold Price to break out.
Gold Investment expert James Turk of goldmoney.com says:
Once C$572 has fallen, gold will have made significant breakouts against all the world's major currencies. What's even more important, these breakouts have been launched from huge bases of accumulation within long-term consolidation patterns. This fact means that there is enough support under gold for it to climb higher for many more years.
"The fact that gold is now rising in value against other currencies is very positive in that we believe the bull market is moving into a new phase." says, Fatprofits independent gold investment advisers.
Fatprofits give this gold price prediction:
Our confidence in gold is based on the yellow metal's limited supply against the virtually unlimited supply of the paper currencies it is valued against. In times of turmoil and uncertainty, gold has always proven its worth. With unprecedented imbalances building in the global economy and gold's main competitor, the US dollar, losing its lustre, we believe it is prudent to take out some insurance against future uncertainty by holding gold or gold stocks.
Ultimately we believe that the gold price will rise north of US$850 an ounce. We therefore continue to favour an overweight position in gold and gold stocks as part of a diversified portfolio.