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Gold hits record high. A good time to buy?

Gold hits record high. A good time to buy?

Gold prices hit a record high on Friday August 19th, at $1,877 per ounce.  It would seem Gold hits a record high.  A good time to buy?

It was not that long ago that gold was trading between $750 to $1,000 per ounce.     The weak U.S. Economic outlook is making investors nervous, and many have been flocking to Gold for the last 3 years.   Chuck Jeannes, CEO of G.TO, one of Canada’s largest Gold Miners,  believes prices will pull back within the end of the year, though still increase overall in the next two years.

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At some point,  investors,  if still despondent over the weak U.S. Economic outlook and the European debt crisis,  continue to look for investments, they likely will not steer clear of all world markets in the medium and long term.     Whether they invest more heavily in Asian markets, or go back strongly to U.S. and European markets, the price of Gold should, over the next 2 years, have slower growth and some corrections along the way.    Additionally, the sheer high price will rattle investors seeking a strong return, who will be wary if the price has reached a peak.

Gold has fluctuated many times over the decades and not always in line with the economy. In general, if the economy is weak, Gold prices are higher.   If the economy is strong, Gold prices go down.   However, this is not always the case.   Sometimes Gold prices stay high even when the economy has recovered.   Gold should generally be an investment for the long term.   It should not be bought and sold in the short term by regular investors.  Investors need to be prepared to follow price trends regularly.   Many experts are wrong about their predictions on where the price of Gold is going to go.