The growing crises of the global economy in 2012, enhancing the chances of gold as a safe haven for investment

Gold price technical analysis 30 - May, 2013

Multiplied many reasons that led to the dramatic rise in gold prices during the year 2011, which hit a record historically on September 6 last registered in 1921 dollars per ounce, it is among these reasons we come to mention the deficit in the balance of U.S. trade and currency war between the euro and the dollar and the imbalance in the equationsupply and demand «high demand versus low supply», in addition to the political events of the past year, especially in the Middle East, and what was its impact on oil prices, which is associated with significantly metal yellow, attached Ragab Hamed, head of bullion company «Emerald»investment to these reasons, saying one factor would have been paid the price to rise, imagine if it met all of these factors, indicating that the debt crisis of the United States and Europe were the main factor in the rise.

This crisis forced Europe and America to cut interest rates in their central banks, even approached the level of zero, which reinforced the feeling when the investors that do not benefit from the retention of funds in banks, to begin a journey to seek refuge safer and more profitable, says Hamid: then all agreed to that gold is the only recourse, especially when the crisis built up Europe to the end of the year 2011.

In the beginning of this year, all economic indicators point to that we are facing more difficult than in the past year, especially after he declared Ben Bernanke, chairman of the U.S. Federal Reserve Bank, the potential for directed the government to conduct a quantitative implementation of the plan, which means they will print new moneywithout the presence of a parallel lid of gold in Central Bank, and this may lead to a significant increase in the rate of inflation.

This event is considered an indication that Hamid Ali serious crisis more severe on the U.S. economy and global, by virtue of the global currency is the dollar and that the country’s economy, Uncle Sam representing one third of the global economy.

More seriously, according to Hamid, is put forward by some leaders of the European Union, regarding the direction of Europe to implement the plan of conducting a quantitative is also, in order to address the crises of successive, having failed all attempts to the other, especially a plan to buy government bonds, which could not get out to the land Indeed, because of the many objections, especially from the British side, Hamid says: If America went to this plan, we are facing a sharp contraction in the economy of the world, but if we followed the European Union predicted collapse.

Loss of value is safe for the euro and the dollar means that the owners of wealth will go to gold, which will lead to another rise in prices, up by Hamid, to 2500 dollars an ounce.

Some may see that this number is pure fantasy, but that Hamid says there is a difference to the rate of rise but everyone agrees that prices will rise, pointing out that he has convincing arguments on this expectation.

If we take the reasons that led to the rise in the year 2011, and compare it what will happen this year, we will see that the rise will continue strongly, inability of the U.S. Trade Balance will rise because of the continuing crisis there, and oil prices will rise as well, due to possible sanctions on Iran’s oil exports, «there is great differencebetween Libya on the impact of oil prices and the impact of Iran »says Hamid. Also will continue to imbalance in the equation of supply and demand, which will go a majority of States to buy gold in large quantities to avoid falling into the same error when abandoned gold and held in foreign currency, to come to the crisis and collapsing currencies and rising gold, Among the countries which will move strongly to support the reserves of crude, yellow, we find China, India, Russia, Turkey, Mexico, Libya, this will enhance the confidence of individual investors towards gold.

The most important reasons that drive to the expectation of higher prices, is the continuation of the European debt crisis, having arrived waves of the crisis to the shores of Italy, Ireland, Portugal and finally Spain, here began the rating agencies the world threaten these countries, which warned the agency «Fitch – Fitch» credit rating that «European Central »it would increase the purchase of assets to avoid the collapse of the euro, while reduced« Standard & Poor’s – Standard & Poors »credit rating of 9 countries in the euro area, including France, Austria, and for its part, threatened the agency« Fitch »reducing sovereign debt rating Spanish average of one or two degrees on the background of slower growth in the Spanish economy, the government’s inability to achieve its objectives to reduce the public deficit. All these things make Hamid says, «price hikes will not stop».

Calmly, Hamid comment on these data, saying: «No way to resolve the crisis of Europe, pointing out that 2012 will witness a bigger crisis than the world has witnessed over the past 4 years, at least I had a hope in the world to succeed in the old continent’s leaders to resolve their crisis, Today, those hopes have collapsed, adding with a sigh «Unfortunately, the bottom of the blade after the crisis has not».

It is stated, it is advisable expert gold, the investor who is looking for long-term investment to buy gold and not be less than the proportion of this metal in its portfolio of financial one-third, when he returned Hamid to confirm that the price of an ounce will not come down from the $ 2000 has up to $ 2500, and expected not to decrease the price to 2015.

Where ranges rises annually, including more than 15% in the period between this year and 2015.

The employee Vinsahh buy one gram to 10 grams per month «by Salary» is not recommended to buy futures contracts or gold certificates «If you want to buy, buy metal concrete», pointing out that this is required by Islamic law, which protects the investor from all of the risks related to the market change.

The investor, who does not want to invest long term, and wants a quick profit Voadha advise him Hamid buy gold, citing what happened in 2011, which exceeded the volatility daily price of $ 50 per ounce, which means that if you bought in the morning, and sold in the evening Vstervh$ 50 per ounce , «Previously we were looking to gold as a measure to save the day I greet you look at it purely an investment perspective»