Guess the Price of Gold in January 2014
There are various long-term graphs that clearly depict a correlation between the price of gold and other monetary forms. Most of the graphs show that one form surpasses the other, until the other gears up. However, let us consider the current scenario that is the US monetary base expansion, since the financial crisis broke out in 2008.
The Federal Reserve Bank of St. Louis has announced “QEternity”; so it is reasonable to infer that the monetary base expansion will go on. However, if the growth continues through January 2014, there is a high probability that the price of gold will be $2,300 by then. That would be around 30 percent rise within 1year and 3months.
By the end of 2014, the price of gold is expected to be $2,500 an ounce, on an average. That is a rise of 41 percent as compared to the current price of gold.