Santa Monica, CA (PRWEB) May 23, 2006
By triggering inflation and consecutive interest rate hikes, record-high oil prices have created ideal economic conditions for the gold bull market, boosting gold to its highest price in 25 years at $700 per ounce. Because oil prices and the resulting economic consequences are not likely to diminish in the near future, gold prices are poised to skyrocket, making the purchase of gold coins a secure and profitable investment in a time of economic uncertainty, according to Lear Financial Inc., a precious metals asset management firm.
Over the past year, oil prices have increased a staggering 38 percent, which has significantly hindered meaningful economic growth by cutting spending power and prompting rising inflation. In an effort to curb inflation and offset the detrimental effects of high oil prices, the federal government has consistently raised federal interest rates for the past two years, with consumers experiencing the 16th consecutive interest rate hike in May. Recently, the federal government publicly warned the American people that oil prices will undoubtedly persist in their upward trend for several months yet. In order to counterbalance rising oil prices and hedge run-away inflation, financial experts agree that the federal government will have to continue to raise interest rates. Despite the rising interest rates, escalating inflation, and a weakening dollar, gold coins such as the American Eagle gold coin are emerging as a safe and promising investment.
The Gold Bull Market – A Historical Perspective
The gold market is inversely correlated to the equities market, gaining the most strength when inflation is high and the dollar is weak. The last gold bull market spanned 15 years, peaking at a historical high of $800 an ounce in 1980 immediately before interest rates began to drop after more than a decade of crippling oil prices, a costly war and rampant inflation. Forward-thinking investors who purchased gold before the economic downturn of the late 1960s and 1970s, while interest rates were still low, enjoyed a remarkable 2,400 percent profit on their investment.
A Promising Investment
With no relief from oil prices in sight, financial analysts anticipate that gold prices will not only reach their 1980 peak, they will surpass it. Peter Schiff, chief executive of Euro Pacific Capital, a brokerage firm in Newport Beach, California, predicts that gold prices could go as high as $2,000 an ounce, depending on how long bullish factors such as oil prices and interest rates continue to put pressure on the economy and the dollar. Intelligent investors who recognize this inevitable market trend and purchase gold now, well before its forecasted peak, stand to realize similar profits as with the last gold bull market of the 1970s.
GoldCentral.com, a division of Lear Financial, Inc., one of the most highly endorsed gold companies in the industry, is committed to helping smart investors capitalize on the gold bull market. Featuring real-time quotes and pricing, online account valuation, and instant trading with the click of the mouse, GoldCentral.com allows gold investors to securely order and sell gold coins without the hindrance of physical possession, saving them the inconvenience of shipping, handling, and insurance. In addition, GoldCentral.com aims to educate gold investors and keep them well informed on the latest trends affecting the gold market by providing email alerts, newsletters, market commentary, and a live staff that is available to answer any questions an investor may have.
GoldCentral.com, a division of the internationally renowned precious metals asset firm Lear Financial, Inc., is dedicated to providing Web investors with all the pertinent information and tools they need to securely purchase, sell and trade gold online. GoldCentral.com offers a diverse suite of intelligent investment resources – including real-time pricing, regular email alerts, newsletters, and a live staff available to answer real-world questions – that not only enable investors to stay current on the latest developments in the gold market, but also give investors the flexibility to move gold as expeditiously as conventional paper investments.