LOS ANGELES, Aug. 28, 2012 /PRNewswire/ -- The price of gold reached a four-month high of $1,674.28 per ounce on August 24, 2012, as a result of speculation concerning yet a third round of quantitative easing and dismal U.S. economic reports. Capital Gold Group CEO, Jonathan Rose, forecasts gold to soar in the coming months of 2012.
"Investors need to wake up and realize that gold is not an investment but a vehicle for wealth preservation," stated Rose. "As the Federal Reserve hints at another attempt to stimulate the economy with a third round of quantitative easing, investors who maintain long-term funds in dollar denominated investments risk serious loss of buying power resulting from the inflation that follows. The time to buy gold is now, before QEIII."
Fed policy makers stated that further action would be needed "fairly soon" without evidence of a "substantial and sustainable" improvement in the economic recovery, in the latest minutes from the Fed meeting ending August 1, 2012, that were released August 22. The next meeting takes place September 12 and 13.
"If this endless money printing does not stop, the U.S. dollar will not only continue to devalue, but inflation will accelerate at an alarming rate," said Rose. "Since it appears that QEI and QEII were unsuccessful in rallying our economic recession, I don't hold much hope for QEIII. It will only do more damage to an already shrinking dollar."
Rose added, "There is so much economic uncertainty surrounding the Fed, U.S. economy, jobs, and the looming fiscal cliff, that I would not be surprised if gold exceeds $1,700 an ounce in the coming months and $5,000 an ounce in the next 4 to 5 years."
Capital Gold Group, Inc., an accredited, A+ rated member of the Better Business Bureau and Inc. 5000 List Honoree for 2011, is a premier provider of investment grade gold and silver coins, as well as Precious Metals IRAs and bullion, with headquarters in Woodland Hills, California. Jonathan Rose, RFC, President and CEO, a sought after commentator and keynote speaker on precious metals, can be heard on "The Gold Show" interpreting global economic events for the average investor on news/talk radio stations nationwide. 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, Inc.