In The Past Ten Years Gold Returned Over 550 %. Where Is It Heading?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Gold compared to almost all other investments, outperformed brilliantly this decade. From a low of 255 per ounce to 1431, gold returned over 550 % in the past ten years. It took six years for gold to double from 250 to 500. It took only three years for gold to double from 500 to 1000.
Of course I can't guarantee it, but based on key fundamentals I believe we could see another doubling of gold in the near future. One of the biggest reasons gold could double once again has to do with China.  Chinese President Hu Jintao called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the Yuan into a global currency.  Mr. Hu's veiled criticism of the Federal Government reflects widespread feelings among developing nations that U.S. interest-rate policy is devaluing the dollar, prompting flows of capital overseas and creating inflation elsewhere. The U.S. blames Chinese currency undervaluation-not Fed policy making-for worsening competitive and inflation problems overseas. Some analysts have predicted that it will be only a few years before 20% to 30% of China's $2.3 trillion in imports could be conducted in Yuan rather than dollars. China has said it will continue to allow its currency to appreciate making a new move to make the Yuan a Global Currency.  In March of 2009, China's central bank governor, Zhou Xiaochuan, created an international stir by calling for the creation of a new synthetic reserve currency as an alternative to the dollar.  China has launched trading in its currency in the U.S. for the first time, an explicit endorsement by Beijing of the fast-growing market in the Yuan and a significant step in the country's plan to foster global trading in its currency. The Bank of China, which is 70%-owned by the Chinese government, now allows companies and individuals to buy and sell the Chinese currency through accounts with its U.S. branches.  
Let's not forget we have several issues here at home that will continue to drive the price of gold in the future. More than 100 American cities could go bust in the next 12 to 18 months as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown. Ben Bernanke recently commented that the $600 billion 'QE2" stimulus package might yet be expanded on if deemed necessary. You and I both know that creating money out of thin air will not solve the problem. Unfortunately Washington has decided to try and spend their way out of the current financial crisis rather than cut spending and endorse incentives that will create jobs.  Western economies will still face slow growth and investors remain eager to preserve their wealth and diversify out of the dollar.
If you are interested in diversifying into gold and silver in the amount of $10,000 or more please feel free to call or e-mail me. I am interested in answering all your questions and providing you with all the information you need so you can make an educated and confident decision that is best for you.
 
 
My e-mail address is [email protected] and my number is 877-864-1072.
Mike Weiner
Swiss America
Senior Account Executive
877-864-1072
[email protected]