gold-prices-could-hit-6300(August 22, 2012) - Gold prices have been going strong for about a decade now, but media analysts believe it is going to rise even higher. A respected technical analyst for Citi, Tom Fitzpatrick, was recently reported by Business Insider as saying he is as bullish on gold as ever, but sees prices rising far more dramatically than just the $2,400 per ounce level by the end of 2012 that he had called for previously. Fitzpatrick is banking on precious metals in a big way and suggesting that there is no reason the yellow metal could not rise all the way to $6,300 per ounce, more than triple its current value. For many of today's investors who have chosen to include hard assets in their portfolios, such as bullion, this is extremely good news.

Plenty of other analysts see gold prices rising steadily throughout 2012, but Fitzpatrick goes much further. He is charting the value of precious metals over time and comparing those trends with trends we see today in order to generate a prediction built on a solid knowledge of the past.

"When we look at the move in 2006/2007, if we follow that trajectory it should take gold up towards $2,400," he told the press. "But we see no reason why this gold trend cannot perform as well as the last bull market in gold between 1970 and 1980. If you replicated that move exactly, it will take gold to $6,300."

This trajectory that Fitzpatrick speaks of includes a time period in which major global events such as the USSR's invasion of Afghanistan took place. That event alone did much to encourage people of the Cold War era to consider choosing gold as an asset, but we need to remember, also, that at that time certain other historical factors came into play. From 1934 until 1964, Americans could not own gold privately thanks to the United States Gold Reserve Act. By 1964, investing in gold certificates was again allowed, but not until 1975 could Americans actually freely trade in the yellow metal again. By looking at it that way, we can see that the period from 1970 to 1980 that Fitzpatrick refers to only included 5 years during which US citizens could have invested in gold. Currently, anyone can own gold so this may indicate the kind of massive price increase Fitzpatrick suggests.

The analyst also told King World News "Food prices have risen aggressively and there are few, if any, indications of a turn in trend."

This, coupled with what he said about the current state of the global economy suggests the time to buy precious metals could be now: "Having seen the ‘shaky’ US (fundamentals) and keeping in mind that Europe is still in severe economic turmoil in addition to a slowdown elsewhere (especially China)..."

These are the signs many investors look for when determining when the right time to buy is. It looks like a harrowing ride could be coming our way. Preparing for the future by choosing hard assets like gold or silver may be the smartest path to take.