Next Stop for Gold $2,000 Per Ounce!

Next Stop for Gold $2,000 Per Ounce!

Ever heard of tulip mania? Well how about gold mania? It’s estimated that all the gold that was ever mined on Earth would fit into just two Olympic sized swimming pools. The world's biggest deposits are being depleted quickly, and new discoveries are uncommon. The bottom line: the demand for gold exceeds supply. Gold can easily explode higher to new highs.

Gold is near the $950 level and I expect it to break above its record intraday high of $1,030.80 that it hit on March 17, 2008. Once it goes above this psychological barrier of $1,031, it will head much, much higher.

Now please keep in mind that investing in gold does have risk and gold tends to be quite volatile. We may see a speed bump here and there in the coming months. But, I do think you should invest in gold as an insurance policy, just in case the global economy gets worse.

How high can gold ultimately go? Mark my words... gold will hit $2,000 per ounce or even higher.

Recently gold has been on an absolute tear as investors are piling into the yellow metal as a safety hedge. People are still quite concerned about the current economic crisis and are unsure what will happen in the future. The financial downturn we’re experiencing has crushed conventional investments like stocks and real estate and gold has shined throughout this downturn.

Gold is certainly in full bull market mode right now. Recently it headed higher on worries of both inflation and deflation. Surprisingly, central bankers are in favor of higher gold prices because it suggests their attempts to head off deflation are starting to work.

Now, the average person is not worried about inflation or currency debasement. They are worried about the money in their bank account. That’s just one reason that gold prices are rising. People are turning to safe havens because they think their banking system is on the brink of failure and they see the stock market is in the toilet.

Monetary disorder in general is very bullish for gold. The U.S. government is printing up huge amounts of new money and other governments around the world will have to follow suit. Currencies are going to be devalued around the globe. Paper money will be worth less and real assets will be worth more - plain and simple. Hard assets like gold, silver, copper and even real estate will rise in value.We know that gold is a safe haven in times of financial and geopolitical instability. Gold has often been nicknamed the "crisis commodity" because it tends to outperform other investments during periods of market distress and world tensions.

World demand for gold continues to rise and production is declining. It is extremely difficult to open new mines swiftly to address the supply shortage. Gold demand is coming from central banks, but also from private institutions and individuals. The biggest, most enduring buying force of them all is billions of people in India and China that can now freely buy gold.

Again, my target price for gold is $2,000 per ounce or higher. What I’m saying is that gold prices will double giving you an opportunity for a 100% return. I think this could happen within a year or soon after. Gold has produced outstanding investment returns over the years.

So take advantage of this golden opportunity and invest in gold!