Gold to Hit $1500 in 2010?

MANCHESTER, England, Feb. 25 /PRNewswire/ -- Gold rose to record prices during 2009. But according to one analyst, 2010 will see the price of gold rise even further.

Jeffrey Nichols is the Managing Director of American Precious Metals Advisors and has publicly stated that he wouldn't be surprised "to see gold at $1500 or higher," by the end of 2010. Nichols is one of a number of  analysts forecasting the continued rise in cost per ounce of the precious metal.

2009 saw the demand from the jewellery sector fall, as the global economic downturn resulted in lower jewellery sales. However, this drop in demand was compensated for by a rise in investment. As the global currencies took a severe dive, investors rushed to buy gold as a 'safe bet' investment through the financial crisis.

Despite the formal end of the recession having come during the final quarter of 2009, its consequences are still being felt. As recoveries on a Government level are likely to be a slow process lasting a number of years, the outlook for gold, the price of which is invariably inversely proportional to the US dollar, is positive. Continually rising prices are likely to push investment levels even higher.

Buying gold as a potential investment option is becoming increasingly popular with wider demographics too. Traditionally seen to be the reserve of the wealthiest and a fairly elitist strategy too, the rise of online gold exchanges, such as Gold Made Simple, make the process much more simple and more accessible. Enabling users to buy gold in even the tiniest quantities online looks set to further investment as the year goes on.

SOURCE Gold Made Simple