New York, New York (PRWEB) September 25, 2012
The US Federal Reserve has announced its third round of stimulus, QE3, a bond purchasing program that will bring the central bank to $40 billion in mortgage-backed debt each month in an attempt to reduce the cost of lending and hopefully spark economic growth. GoldPrice.Net and BofA Merrill Lynch believe that this could cause gold prices to skyrocket up to $2,400 per ounce in the next 24 months as investors purchase the metal to protect wealth.
A recent report by BofA Merrill Lynch says that the new open-ended nature of QE3 gives way to upward pressure on gold prices that should continue until employment is strong enough to require a change in policy. The bank does not see this happening for at least 2 years. The report also said that as emerging markets grow wealth, their budget allocation to non-essential items, including gold, will increase in the long run. This could be a major driving factor for gold prices in the coming years.
John Halloran, President of GoldPrice.Net says “Gold prices have climbed over 12% this year and are headed towards $2,400 by 2014. The Federal Reserve is increasing the money supply much quicker than they can handle. This can result in serious inflation throughout 2012 and 2013, which may be beneficial for gold prices, since the metal is considered an inflationary safe-haven asset.
For over two decades, GoldPrice.Net (GP) has been known by their slogan “Gold Prices That Can’t Be Beat.” They offer some of the nation’s lowest quotes on gold, silver and platinum, real-time pricing and the nation’s top free gold investor education kit all just a click away at http://www.GoldPrice.Net.