As many analysts predicted, the price of gold has continued to rise in 2008 to new record highs, but when will the rise hit the brakes? Some have called for $1,000 per ounce gold, while others have set their eyes at $2,000 per ounce and beyond, but who should investors believe? A recent article published on SwissAmerica.com polled more than 40 financial experts to get their opinions on the future price of gold.
"When the price of gold goes over $1,000, the bull market will be in its bubble phase. The price may go far higher--depending on what else is going on in the economy and the markets. But this will be a time to be careful...when we stop adding to our positions and begin to reduce them. Gold is now cheap and almost hidden. People are buying it for the right reason: because it is cheap. We see signs, though, that gold is coming out of the closet and the financial press is beginning to notice," Bill Bonner editor of the Daily Reckoning said.
A good rule of thumb when it comes to investing is that, when everyone seems to be on the bandwagon with a certain investment, that is the time to get out. The price at which the gold bubble tops out remains to be seen, but when your friends start talking about how they are making a ton of money from their gold investments, you might want to think about taking your profits before the bubble bursts.
That being said, there are many reasons to be excited about investing in gold right now, and there are many ways to do so. One of the best ways to invest in gold is through a gold CD at EverBank. They offer exposure to the price gains in gold but guarantee your principal, which would provide you with protection in case the bubble were to pop sooner than you expected.