Can I sell gold at $5,000 in 2010? Happy New Year!

2009 will be remembered as an exceptional year for commodities. The commodities bull run this year has been fueled by gold, platinum, garlic and turmeric. Gold emerged as the singular driver that pushed the boom in commodities.

Gold, gold, gold…everywhere we hear and read about the glistering yellow metal. As the year draws to a close, it is celebration time for gold scrap sellers as the yellow metal they bought for $700 per ounce an year back is worth $1100 now. That is a huge return that common people, investors and traders are lured to buy more and more gold.

But gold buyers are not so enthused as scrap gold sellers these days. Gold demand in jewelleries across the countries from India, Middle East to China—the key consuming nations these days—has drastically come down, thanks to the high price of the precious metal.

“Gold is the talk of the town, agreed. But no one is willing to buy gold at this high price. So the problem is that new gold investors are not multiplying. Only the pockets of existing gold investors are bulging with more returns,” says Dubai-based bullion commentator Mark Robinson.

Mark has rightly said it. Will you buy gold at the exorbitant price of $ 1200 per ounce now? You would think twice. But you will be willing to sell your old gold for that price.

I have been getting dozens of e-mails these days from readers wanting to know is it the right time to invest in gold or will gold price crash and therefore should they wait to buy gold as an investment. One e-mail write said: “Dear David: Will I be able to sell my gold at $5,000 per ounce?”

I am re-producing some of these e-mails. Let us hope that gold prices would zoom to $5,000 per ounce to the joy of this voracious gold lover. Happy 2010!

Article source: http://www.commodityonline.com/news/Can-I-sell-gold-at-$5000-in-2010-Happy-New-Year!-24341-3-1.html