There are a number of predictions ranging from extremely positive to extremely negative, for the year 2010 for pricing of the rare precious metals. Some investors will choose to stay on the safe side and would not invest in the precious metals at all; while others will take the risk based on predictions for increased leverage. The predictions for pricing definitely play a very important role for the investors for the right decision making. However, due to the current economic situation, one cannot say exactly what might be the pricing trends for the year 2010.
Prices increase usually after a massive hysteria or after the economy starts recovering, as it is a cycle that goes on and on. Some investors refer to this point as a climax and that is what the year 2010 is. Some investors are positive because of the rocketing prices while others show disbelief due to the present conditions.
For predicting the price and value of gold in the year 2010, the analysts need to consider several factors which include Dollar prices, oil prices, economic conditions, inflationary rates, hedging tactics and various other economic trends. Therefore here are some predictions for the 2010 for the price of gold that one can consider before investing in gold.
As on the twelfth of February 2010 the gold price was calculated to be floating around 1,100 dollars per ounce. An estimate is that the price of gold will remain a little above and continue to float around 1,000 dollars from the end months of December 2009 to the early months of 2010.
Some analysts have predicted that the price of gold will reach the climax point in the march of year 2010. At this point the price of gold is expected to reach 1,500 dollars and after that it will shoot up to 2000 dollar per ounce. However many analysts fear that the conditions will not remain the same for a long period and gold price might start decreasing. The prices of gold then can decrease up to eight hundred dollars per ounce.
For the year 2010, it is predicted that the price of gold will increase to twenty percent of its present value and at the same time the price can decrease to half of its present value in the later years. The price of oil increased and decreased in the same way after the great depression. Therefore, a short term investment in gold is worth considering.
One analysis and forecast by Goldman Sachs for gold price is that the average price of gold in 2010 and 2011 will be $1,350 per ounce and $1425 per ounce respectively. The reason for this increase is the low interest rate in 2010 that will support the price of gold.
Another prediction by the Canaccord Adams is that the average price for 2010 of gold would be $1,300 per ounce. The reasons for this prediction include factors like devaluation of currency, rising inflation and the growing popularity of gold. While it is not possible to predict the exact price of gold in 2010 but according to analysts and their predictions the price will increase further for a short period of time.