Investing In Gold And Silver For Capital Preservation And Appreciation

The Evolution Of Economy In 2011

The level of human life quality has always been closely connected to the unfolding of global economy. Therefore people felt the need to know in advance what the economic future might bring. This is how prevision appeared. Although the methods of prevision are very complex, they cannot guarantee the exact precision of a forecast. As a consequence, the economic evolution in 2011 can only be outlined but not predicted in detail. The job of the analysts has been made more difficult by the striking events in Japan. The earthquake and the tsunami hit the economy of the world and not just that of Japan.


The level of human life quality has always been closely connected to the unfolding of global economy. Therefore people felt the need to know in advance what the economic future might bring. This is how prevision appeared. Although the methods of prevision are very complex, they cannot guarantee the exact precision of a forecast. As a consequence, the economic evolution in 2011 can only be outlined but not predicted in detail. The job of the analysts has been made more difficult by the striking events in Japan. The earthquake and the tsunami hit the economy of the world and not just that of Japan.

The beginning of 2011 was promising. The nations previously hit by recession seemed to slowly recover. The bad news is that the small growth remains in the field of theory while a large amount of people will not be able to notice it in their day by day existence. Many nations still deal with high inflation and unemployment. Although USA keeps its inflation within controllable parameters, this is not the case of unemployment. American political leaders thought that supporting the industries which create jobs would be a solution to this problem, but reality comes to disappoint everybody. Profits were used by corporations to augment share prices and not hire people. By contrast, economies with high rates of growth like India and China seem to be more open to hiring. In respect to unemployment, the predictions for 2011 are not very positive. It seems that its rate will remain high in quite a number of developed states, including the USA.

The oil market also plays an important role in global economy. The changes on this market reflect directly in our lives since they determine the fluctuations of food prices. The revolutions in North Africa could not remain without consequences on this market. The price of oil has risen but the effect has not been dramatic due to the Saudi Arabia’s promise to produce more oil. This Arabian forecast led to a decrease of the oil price. The opinion of the analysts is that oil price will rise this year but its growth will not have the power to stop the recovery of the economies affected by recession.

The fact that America is addicted to oil is no secret. Nevertheless the state is prepared to deal with a sudden oil price soaring. It counts on its low rate of inflation as well as on the strength of its economy as helping tools. Europe too is able to fight against such a price jump thanks to the high fuel taxation. However European central bankers fear such an unpleasant event and this is what might determine their pre-emptive actions to be too drastic. This situation would have repercussions on the European economies trying to defeat the crisis. Middle East displays its own economic issues. A solution to the high number of food and fuel subsidies would be cutting it as much as possible and providing support to poor people. Unfortunately, these reforms are not yet on the to-do list of Arab rulers.

The price of commodities also has a big impact on global economy. The forecasts of gold price evolution cannot be one hundred percent accurate, despite the analysts’ efforts of studying historical data in order to make predictions as precise as possible. Some analysts forwarded the idea that the price of gold would soon reach a peak of 5,000 dollars per ounce. Other colleagues contradicted them taking into account the psychology of masses. They stated that people do not believe this peak would be reached and their lack of trust will determine a resistance against its materialization. There are also analysts who believe in a decreasing gold price during 2011. They think this will be triggered by the recovery of the economies affected by recession. All the predictions related to the price of gold show one thing: that if you are interested in buying gold but you are waiting for the right moment, your waiting has come to an end. 2011 is the year for purchasing the shiny metal.

Investing in coins or small bars is the most common and traditional way to Buy Gold

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