Gold: Buy, Hold Or Sell?
September 6, 2012 by Gold Editor
SOURCE:[Peter Zihlmann]- In 1980, the price of one ounce of GOLD reached $850. Today, the purchasing power of the US dollar is substantially less than in 1980. The price of one ounce of gold would have to rise to $ 2,550, assuming an annual average inflation of 3.5%, to reflect the value of the US dollar thirty years ago.
The bull market of the gold price started towards the beginning of 2002. On the way from $255.3 to the recent intraday all-time high of $ 1,921 (an increase of 760%), several significant corrections took place, the most severe one in 2008 when the gold price sank by 30% only to jump 165% to a new all-time high. The bull market is not over! The gold price is well-established in its long-term up-trend and is no-longer overextended as it was in 2006, 2008 and 2011. The present momentum will likely lead the gold price higher in the short-term (two to three months).