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September 6, 2010, Los Angeles – Gold bullion prices rose above $1,253 on Friday before settling lower and ending higher by 1 percent for the week. The price of Silver rallied to a 2 1/2 year high of $19.91 on Friday up 1.7 percent for the day, and 4.25 percent for the week.

“Gold is in a longer-term bull market and it’s quite normal for a recovery to come off the dip. The jobs number wasn’t as bad as people thought, but it still wasn’t a good number,” said Sterling Smith, analyst for Country Hedging Inc.

Gold bullion’s most accurate forecasters have stated that the current Gold rally, which is the longest rally in 9 decades, has much further to go no matter what the economy does.

Analyst at Deutsche Bank in London, Dan Brebner, and Gold bullion’s most accurate forecaster so far this year, says Gold bullion may reach $1,550.

Eugen Weinberg, an analyst at Commerzbank AG says, “A stronger economy would create more jewelry demand. If the economy stays weak or gets worse, then investors will be looking for a safe haven.”

Frank Holmes, CEO of US Global Investors, in an exclusive interview with Kitco news said the price of Gold has the potential to double within the next five years, and if governments make policy missteps, the Gold price could go much higher.

“I think that gold can double over the next five years, comfortably; that is a 15% compound on rate of growth. And that is what I’ll stick to,” he said.

“There are not many asset classes that can demonstrate that,” Holmes said. He goes on to say negative real interest rates and government deficits tend to make Gold a very attractive investment and both of these scenarios are occurring in our economy today.

“If deficit spending looks like it is sustainable and you have low interest rates to fight deflation then gold performs, because you get currency devaluations.  History is just replete with it,” he said.

According to Holmes there are two types of Gold buyers, he calls them price takers, who are “basically a buyer of gold for jewelry,” and price makers who buy Gold bullion as an investment.

“Gold is clearly becoming an important part of that, and I think that phenomenon will grow. As it does, we will see gold trade at higher prices,” he said.

Frank Holmes makes several excellent arguments in favor of Gold’s continued move upward. Why continue to hold paper assets with questionable value, when you can invest in physical Gold bullion? Add physical Gold to your IRA, it’s easy to do, so do it today.

Regards,

Don