Since more than a decade ago and gold prices continue to rise, I began a journey to qualify for the gold price of $ 250 roughly in 2001 and reached their highest level so far in the middle of 2011, when the price per ounce in 1925 dollars, which represents a big increase to the asset in the course of this relatively short period, which makes the average annual rate of return on gold about 20 per cent, which is exceptional by all standards, there is almost out to achieve an average return of 20 per cent a year. With the achievement of the gold peak in the last year was gold of a campaign to correct a relatively limited, and since that time tend gold prices to fluctuate dramatically push some to believe that the holding of gold is near an end, and that these fluctuations to receive some doubt on the likelihood of continuing the general trend upward for the price. Gold between him and the cash basis U.S. type of link, and waiting for speculators gold is always a great deal of passion for the announcement of any facilitating quantitative or facilitate in U.S. monetary policy to begin with fever of speculation in gold, and finally had the attention of speculators gold bound primarily towards quantitative easing, the third of the Federal Reserve, and theexpectations about the rise of gold prices as a result of this great convenience, but so far these hopes seem to fade away little by little.
Others believe that gold is not suffering bubble forming because the conditions the bubble price, from the point of view, do not apply to the parent currently, but confirms a lot of speculators in gold that projections indicate that global demand for gold will continue to be high in the coming years, at least in 2012 , and then sure speculators in gold down the upward trend to him, and the last of these expectations that the price of gold in 2012 will hit the barrier Alfi dollars an ounce, which is an outright decline in outlook optimistic on the price of gold was up at that price, according to some projections anomalous to five thousand dollars . Rates are nominal interest zero almost, and interest rate negative in most Onhalm, and there is in fact likely to be reflected these trends, the rate of interest both in the short or medium term, and this was confirmed by the Fed in terms of maintaining the interest rate is fixed at current levels until mid-2013 As long as these conditions persist in the world, the pressures on the price of gold will continue to rise on the rise.
The center of this multiple projections on trends in gold prices in the future, and may be stronger views in gold is what launched recently global investor Warren Buffett in the annual report to his institution Berkshire Hathaway Inc for the year 2011, and described the gold that out of vain does not produce anything, but are purchased by investors because the buyer hopes that someone comes in the future, and who also knows that gold is produced not be prepared to pay a higher price.
The semi-Buffett these buyers speculators in a tulip flower of choice for asset investment in the seventeenth century, which dealt with here in the” economic” in the first episode of a series of world that does not learn from the crises, and as is common Buffett indicates that the demand for out of such sterile Gold always be driven by fear of economic collapse or decline the real value of assets such as semi-liquid debt securities, as well as risks escalate when the collapse of the currency.
See Buffett that this kind of investment assets requires gathering more and more buyers who are tempted constantly, and who believe that brings buyers will grow more and more in the future, and in the light of this assembly, the owners of the parent does not rush to invest in what can be produced by the parent, but the belief that others will want to be more original and more in the future, and in the view of Buffett’s gold is now preferred asset for investors who are afraid to invest in other assets, in particular paper money. However, the drawbacks of the two main gold that he has no great benefit to those who he is keeping in itself, as it does not produce sterile out.
When someone possesses alloy, weighing ounces of gold forever, it will not find in the end only ounce of gold, without any significant increase in mineral content of the alloy, and if so, which encourages people to continue in the acquisition of metal? Buffett believes that the one who encouraged speculators to invest in gold, which is that the factors responsible for the fear of the alternative investments will grow, and it was these beliefs are correct, over the past decade, as well as that buyers pay higher prices to more purchases that have achieved their expectations of investment, especially with increasing numbers of entrants to the queue of buyers, and during the last 15 years share prices of Internet companies, as well as housing prices have soared, and in the process joined a lot of investors to pool buyers a way that helped the rise in prices to continue, but the bubbles price, which was formed as a result of that exploded strongly afterward.
To emphasize the seriousness of gold as an asset refers Buffett that the total gold extracted from the earth so far about 170 thousand metric tons, which if melted would become cubic dimensions of 68 feet only, and when compared to the value of this cube to the rest of assets such as equal to the cube of the land agricultural or assets of the mega companies such as Exxon Mobil, during a century from now will produce agricultural land huge quantities of agricultural crops as will be the ‘Exxon Mobil’ had been distributed trillions of dollars of profits and also applies to other assets, as will the amount of 170 thousand tons of gold as it is without any change and also unable to produce anything.