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Gold's Demise: Another False Alarm.
Saw this article today on YahooNews.com from so-called "experts" who are once again predicting the demise of Gold.
Here's the link:
This is the proverbial "Boy Who Cried Wolf".
Worldwide sales of gold jewelry remain robust and this past Holiday Season saw very strong sales of Gold Jewelry. In particular two-tone gold jewelry is now extremely popular especially in 18 Karat configurations.
If you read the comments by the so-called expert and analyst, Jessica Cross, you will clearly note that for every one of her alarmist predictions for Gold's imminent downfall she provides a counterbalancing hedge comment. Sum result: Much ado about nothing.
If anything, there are pervasive arguments to show that Gold's price will remain strong and increase in the near term:
1. Gold's price has risen 60% since 2001.
2. Price is increasing at the rate of 2-4% a year.
3. Weak dollar which shows no signs of reversing.
4. Political instability and economic inflation in many parts of the
world.
5. Traded Gold funds which use physical gold as backing.
6. Increasing consumer demand...3rd Quarter 2004 showed an increase
of 8% over same period 2003.
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