Gold Jumps to Five Month High Due to Fed Speculation


Bloomberg recently announced that speculators are currently increasing their bets on increased gold prices, which has sent gold prices to a five month high to $1,687. The reason for the surge in value has much to do with the speculation that the Federal Reserve will expand its record stimulus. If this is to occur, the price of gold is expected to grow in the near future.

cash for gold ratesThe report also revealed that money managers raised their net-long positions by 19 percent. This came shortly after Bernanke spoke at an annual forum in Jackson Hole, Wyoming. There he shared that unemployment is a “grave concern.” It is thus expected that the Federal Reserve will take on a second round of quantitative easing to create a more favorable situation.

As gold prices continue to increase, some gold investors are going to great lengths to sell gold to brokers for top dollar. Gold is being sold/bought in the form of gold bullion, gold bars, gold jewelry, gold watches, and more.

For those seeking to sell gold, it is recommended that a licensed broker be engaged. Such a broker will be willing to offer top dollar for high quality gold. The process of selling gold is quite simple. Gold’s value is normally based on its karat and weight. Once the quality of gold is assessed, the seller is offered market rate for his or her gold items.

While it appears that gold’s value is expected to rise in the near future, experts are still unsure as to how it will fare in the coming months. Much of its worth depends on what the Federal Reserve and other key parties accomplish in the coming days.

Other commodities that are expected to rise over time are silver, platinum, and precious stones. Put simply, the more creative the Fed gets to help speed up financial recovery, the more likely the value of commodities are to rise.

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