Why This Is The Best Time To Invest in Gold?

If you are a stock investor, you might have been taking a look at what’s happening in the gold market. On May 7th, gold prices again breached the historical barrier of $1,200 per troy ounce for the second time after December 2009. Now when you invest in a junior gold mining stock company, the chances are that you can get all the benefits of the increase in the prices of gold while at the same time taking advantage of the value driven analysis of a typical small cap.

Read this 40 page Gold and Silver Investing FREE Report from Robert Prechter! Get this Investing in Gold Guide from Doug Eberhardt. THis might be the best time to invest in gold as strong currencies like EURO and DOLLAR are losing value. In times of inflation, gold is the best invesment. The last bull market in gol lasted for ten years starting from around 1970s and ending in 1980s. Those who had invested in gold then became rich. This might be your chance to become rich. Invest in junior gold mining stocks. Turn $200 into $100K in just 1 month with this FREE Penny Stock Trading Report that show how to find killer penny stocks!

Let’s consider the basis for these predictions so that we know how much possibility these predictions have of coming true. Most of the predictions are based on the highest price achieved by gold in the 1980s bull market adjusted for inflation. On the inflation adjusted basis, gold prices are 30% below their all time high of 1980s.

Another argument advanced in favor of gold reaching high prices is the monetary base argument. Gold prices tend to track the monetary base over the extended period of time. Monetary base is the bank deposits plus currency in circulation. Increase in the monetary base is considered to be inflationary. So when expectations of inflation rise, gold prices tend to rise too. Right now, with trillion dollar bailout packages becoming all the rage, inflationary expectations are high!