Gold is currently at $1,035 per ounce as I pen this article. 

How high will gold go?

I’m still very bullish on gold.  My target is $1,200 per ounce before the end of the year.  Gold prices will rise for several reasons including:

The U.S. Federal Reserve will not raise short-term interest rates until unemployment and the housing market show real improvement.  Interest rates should remain low in the near term.  The opportunity cost of holding gold as an investment is small as long as short-term interest rates stay low.  This is quite bullish for gold.

Global gold mine production has been in decline for the past 10 years.  Gold prices were quite low in the late 90s and led to a decline in exploration and discoveries of large gold deposits.  Rising investment demand will exceed production which will boost gold prices further. 

A lack of confidence in the value of the major world currencies will increase demand for gold as a store of wealth.  China and other countries have already been talking about diversifying out of the dollar and into gold.

Heavy inflation is coming due to central governments around the world printing up trillions in new currency in an attempt to pull out of this global recession.  Inflation will send gold prices much higher.

In my Options Power Trader, I just recommended call options on a gold mining stock that has the potential to deliver a 200% gain to his subscribers in just days. 

This little-know gold mining company has mines in South Africa, Australia, Ghana, and Peru.  The company has total attributable gold ore reserves of over 80 million ounces.  The company doesn’t hedge any of their gold production, which allows them to cash in as gold blasts higher.  This gold mining company is perfectly positioned to benefit from higher gold price.  Click here to learn more about my Options Power Trader service. 

Best Wishes,

Ted Peroulakis, MBA

[Ed. Note:  Ted Peroulakis, MBA has dedicated his life to the study of finance, economics and investments.  His passion is protecting and growing people’s wealth.  His expertise is in showing investors how to invest and profit in natural resources, options, bonds, currencies, futures and stocks.  But his real love is trading options.  He finds options plays for his subscribers that have explosive profit potential.  Ted Peroulakis suggests you look into his Options Power Trader.  Click here to learn more…