Expect Gold and Silver Prices to Skyrocket on United States Debt Ceiling Worries, Says Capital Gold Group

Jul 06, 2011, 08:13 ET from Capital Gold Group

LOS ANGELES, July 6, 2011 /PRNewswire/ -- The price of gold hit a new record high of $1,554.10 per ounce on June 22, 2011, and with a continuing pessimistic outlook for the U.S. economy and jobs, and looming debt ceiling talks, Capital Gold Group CEO, Jonathan Rose, says gold is set to skyrocket in coming months.

"The Federal Reserve's attempt to stimulate the economy by printing endless amounts of dollars has obviously failed. More individuals are realizing that gold and silver are crucial to protecting their hard-earned dollars," said Rose.

Fed Chairman Ben Bernanke made it clear in the recent Fed conference on June 22 that slow economic growth could continue into 2012.

"Maybe some of the headwinds that have been concerning us, like the weakness in the financial sector, problems in the housing sector ... may be stronger and more persistent than we thought," said Bernanke.

In addition to the revised economic outlook, another storm is on the horizon: the deadline to raise the debt ceiling.

Congress has less than one month to raise the U.S. borrowing limit or the government will default on its debt for the first time in history, according to comments from the Treasury Department on July 1.  If Congress cannot come to a decision by the August 2 deadline, a default would likely raise interest rates and threaten economic recovery.

"There is a great amount of concern as to what will happen next as the deadline to raise the debt ceiling draws closer," said Rose. "Debt is a major threat not only to the United States, but to the whole world. Gold provides asset protection against global economic uncertainty."  

Rose added, "I would not be surprised if gold exceeds $1,600 an ounce in the coming months and $5,000 an ounce in the next 4 to 5 years."

Capital Gold Group, Inc. is a BBB-accredited, premier provider of investment grade gold and silver, gold and silver bullion, and Precious Metals IRAs, and is headquartered in Woodland Hills, California. Jonathan Rose, RFC, President and CEO, can be heard on "The Gold Show" interpreting global economic events for the average investor on over 300 syndicated radio stations nationwide. Mr. Rose is a sought-after commentator and keynote speaker on gold markets worldwide. To receive a free Gold Guide or for more information, Capital Gold Group can be reached at 800-510-9594 or online at www.StartWithGold.com.

SOURCE Capital Gold Group