Gold Prices Going to Soar

Gold Prices 2010

There are a couple of factors that pretty much ensure that gold will continue to soar in price throughout 2010.

The obvious first factor is the interest rate environment, which after the Federal Reserve confirmed it's going to keep interest rates where they are now, which is pretty much at zero.

Because of that, the minimum 2 percent inflation projected for 2010 will mean that money invested in banks will lose its value during that period of time.

Historically when these two things have happened, gold has surged in price. Consequently, stocks during that time have always fallen and underperformed gold by a huge margin.

There is nothing to suggest any of this will change in 2010, and so we should continue to see a strong increase in the price of gold for some time to come.

While these are not the only factors influencing the price of gold, they are two that measure the surety of the price movements of gold, and near zero interest rates coupled with inflation, which causes cash investments to lose money during the period those factors are happening, have resulted in solid performance for those investing in gold during those times.

Gold Prices 2010