Why Gold Shine Again?

Almost every day in a week after record highs on Friday, China's National Day, which is commonly known as the October "Golden Week" the first day, the international market, spot gold hit a record high of $ 1,320.80 an ounce. Earlier this year the price has risen over 18%, compared with the same period last year rose more than 33%. That night, I and a high school classmate and old friend in Shanghai Xintiandi, a name, there are "GOLDEN" heated debate in the word dessert gold prospects. I found that just more than a month gone, he has become a truly a "gold bug" the. It is said that he is gradually put their savings and investment turned into gold, the reasons for the future, "Save the purchasing power." Indeed, into the century, gold has been in a bull market, and with the global financial crisis, the 2008 peak. Statistics show that since early 2008, gold compared to other major asset classes appears to stand out as much as 58% appreciation over the same period rose only 16% of copper, oil fell 15% against. Especially in recent months, the price of gold stacked high, the rise of a wave of significant domestic and international gold investment. In addition to investment only through the market, investors are increasingly looking to the form of gold coins and gold bullion held by real gold, my classmate who seems to have intended to do so. Thus, some of the world warehousing companies have upgraded equipment and facilities; in the United States Mint, Buffalo gold coins from the pure gold has been sold out. In order to profit from rising demand, some gold coins wholesalers increased premium. Even the calm of the analyst in predicting the price of gold is also starting a time, not far behind. Calyon last week to three months from the $ 1,260 gold price is expected to raised $ 1,350; Deutsche Bank said on Tuesday that the price of gold in 2012 reached $ 1,600 an ounce is not impossible, it hit $ 2,000 before that is not in bubble; the world's leading investment institutions, a senior Blackstone said on Wednesday that if the dollar-based real terms according to the price of gold from its January 1980 high point is still far away, when adjusted for inflation if the record is about an ounce $ 2,200; JP Morgan analysts told clients, we will tell you how to intervene in the gold some caution, but to be honest, gold is an asset you have held, but we do expect the price of gold next year, will further rise ... ... the most interesting is that Capital Economics, a research firm in London, chief international economist Julian Jessop. Two months ago, he was also the one who look empty, had predicted that gold will fall to the end of the year 1000 U.S. dollars an ounce. But last week he suddenly changed his mind, in the latest research report that because of the dollar can not control inflation or collapse of deep concern, now he expects gold will remain high in a few years. The world's largest gold producer, Barrick Gold confidently predicted that gold prices next year will be "easy" break through $ 1,500. Actually, I did not put the price of gold means. I debate with friends just want to express such a view: the experience of the past few decades have shown that impact of the dollar gold price is almost the only determining factor, both showed a high degree of negative correlation. Gold against inflation and the economic crisis has not been a class than the other kind of investment goods showed a better performance, support the theory of the gold value, not as certain domestic financial commentators imagine, the discovery is nothing new. Historically, as long as the economic crisis or downturn, gold and "golden priceless theory" will shine. Therefore, we Chinese people are used to keep gold as an auspicious item, but in fact, gold's popular often just reflects the economic downturn