Mo Omer
Crude oil demand is the lowest for this time of year than it has been in the past 11 years. American consumers are sick of spending, and are looking to invest. Until recently, the stock market had been making a comeback – steadily climbing on the leveraged money thrown into the emerging tech-bubble (Facebook’s $80 billion valuation, Groupon’s $30 billion valuation – despite 50% of their customers swearing against the company).
However, due to the latest stock market drop – caused by the extremely untimely and unexpected under-performance of the Gross Domestic Product (GDP) in the US, gold prices have continued to rally beyond recently set price records.
We’ve been reporting on this for the last two years – and for those of you who heeded economic warnings and invested even in 2010, you’ll know that you’ve made a clean 40% return on investment in just ONE YEAR. These types of returns are unprecedented, and gold is not only continuing to increase in price, there are concerns that inventories will strain to meet demand in coming months. Citigroup analysts predict that this will lead to a coming price range between $2,500 and $5,000.
We were able to reach Ted Anderson of Midas Resources for a comment on the situation. According to Mr. Anderson, “With gold surging to a record of $1637.50 while the Senate is busy playing chicken with the US debt ceiling, economists are reporting that gold will raise whether or not a stop gap measure is passed. It is becoming more apparent that gold is safer than the once reliable U.S. T-bill. Spain, Greece and other European countries are compounding economic woes, and appear to be creating the perfect economic storm. China’s demand for the yellow metal is rivaling that of India, who absorbed close to all of the World Bank’s liquidations. Dismal GDP numbers are driving the U.S. stocks down leaving the markets fleeing to safety.”
Mo Omer is a small business consultant, and is the founder of a Minneapolis Marketing company.