Gold Prices Surge To 28 Year High As US Dollar Crumbles

Gold prices hit a massive 28 year high at $739 today as the US dollar continued to fall through record lows and technical support zones.

Although gold prices eased off slightly in the later part of the day, the message is clear:

The US dollar is in trouble.

If you think that the US dollar is indeed in for more trouble in the future then it may be a good idea to invest in gold and gold stocks as Sam Kirtley of The Gold Prices Newsletter explains:

“Since 2002 the US dollar has declined about 30% whilst gold has risen 160% and gold stocks have done even better than gold. As we have told our readers, the US dollar is dying, and it has shown no signs of making a comeback. Therefore as gold and silver moves in the opposite direction to the dollar, then investing in gold and silver has proven to be, and will continue to be very profitable over the next few years. Short term, there is money to be made as well and for example we recently guided our subscribers of The Silver Prices Newsletter through a trade on silver, which returned a 100% profit in 30 days.”

Sam Kirtley is not alone on this opinion as the Deutsche Bank said in a weekly report: “We expect further advances into 2008 based on new lows in the U.S. dollar. This would, in our view, enable the gold price to move above $800/oz during next year. However, our internal forex flow data suggest the dollar may now be entering oversold territory and that the gold price is ripe for a short term correction.”

Where do you think gold prices are heading?

Should investors be investing in gold to protect and profit from a possible US dollar collapse?

CLICK HERE to keep updated with the latest news, share a comment or problems with products and services. Follow us on twitter or read more news.