Where is the gold price?

Different views of investors about the direction the course for the price of gold in the future, after having reached its highest level ever.


At the end of last week - when it landed prices of goods and rumored about the possibility of the end of the boom in commodity prices present - it was reported that the international investor George Soros - who runs a hedge fund large, which could raise $ 1.1 billion Menen speculation on the pound sterling in 1992 - sold large quantities of gold and silver by the stockpiling them in the past three years, having made a profit of 65%.


The John Paulson - who also runs a hedge fund and was able to raise more than $ 20 billion of speculation in the U.S. real estate market - has told investors last week that he still invests his own money in gold.


Came the views of Soros and Paulson at a time when the price of gold fell last week by 1.6%, and the price of silver fell by 29%, the biggest drop in 35 years.


It was not a surprise to the decline in gold Soros who predicted a decline because of what he called the bubble that would be inflicted on the yellow metal.


But Paulson predicted higher gold price of 1487 dollars an ounce today to four thousand dollars in the past three or five years.


The British newspaper The Guardian that this divergence of views on the price of gold gives an idea of ​​the extent of uncertainty surrounding the precious metals and other commodities, at least in the short term.


She added that the price of gold and other commodity prices have risen in recent months with rising inflation and falling interest rates, which made investors shy of U.S. bonds and other assets yielding weak to get higher returns.


In addition to falling interest rates, investors turned to other commodities because of falling U.S. dollar exchange rate which is assessed on the basis of these commodities, which make it cheaper for investors from outside the dollar zone.


Added to increase the demand for goods by manufacturers in China with the economic recovery in the United States and Europe.


Therefore prices of gold and silver, cocoa and coffee to record levels in recent weeks, prompting speculation that the end of this climb.
Experts differ on whether prices will continue to rise. According to Deputy Head of Economic Affairs of the Corporation Scotia Capital in Toronto, Derek Holt said that the growth of markets in emerging economies will continue, and that will put pressure on commodity prices.


And expected high oil prices, coffee, copper, cocoa and gold to at least double in the next twenty years.