LOS ANGELES, March 9, 2011 /PRNewswire/ -- The price of gold hit a new record high of $1,441 per ounce on March 2, 2011, and with continuing political unrest in Libya and other areas in the Middle East and North Africa, Capital Gold Group CEO Jonathan Rose says the rise of gold is far from over.
"The geopolitical unrest we are seeing overseas is influencing not only gold but oil as well," said Rose. "Typically, gold trades at about 15 times higher than oil, so with oil above $100 a barrel, I would not be surprised if gold reaches above $1,600 an ounce in the coming months and $5,000 an ounce in the next 4 to 5 years."
"Tensions in the Middle East and North Africa are high, and there is a great amount of uncertainty as to what will happen next," said Rose. "More individuals are realizing that gold and silver are an essential part of their portfolio and crucial to protecting their hard-earned dollars."
Gold has been in an uptrend for over 10 years, so while tensions in the Middle East and North Africa have influenced gold's recent spike of 7% since January, 2011, according to Bloomberg Business Week, it is not the complete picture as to why gold will continue to rise.
"Debt is a major threat to not only the United States, but to the whole world," said Rose. He continued by pointing out that governments in countries such as India and China are all seeking gold as an inflation hedge.
"Gold is the insurance needed to protect the assets that inflation will ravage," stated Rose.
On March 3, 2011, MarketWatch commentator Peter Brimelow reported that China imported 200 metric tons of gold in the first two months of 2011, which suggests an astonishing and bullish outlook on the yellow metal.
With the U.S. dollar plummeting 13% since June, 2010, and the Federal Reserve buying $600 billion in U.S. treasuries in its second round of quantitative easing, more individuals are turning to gold and silver to protect themselves from increasing inflation, the continued devaluation of the dollar, and a future which is difficult to predict.
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 has its headquarters 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 also a sought after commentator and keynote speaker on the 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, Inc.