By David Lew
2009 will be remembered as an exceptional year for commodities. The commodities bull run this year has been fueled by gold, platinum, garlic and turmeric. Gold emerged as the singular driver that pushed the boom in commodities.

Gold, gold, gold…everywhere we hear and read about the glistering yellow metal. As the year draws to a close, it is celebration time for gold scrap sellers as the yellow metal they bought for $700 per ounce an year back is worth $1100 now. That is a huge return that common people, investors and traders are lured to buy more and more gold.

But gold buyers are not so enthused as scrap gold sellers these days. Gold demand in jewelleries across the countries from India, Middle East to China—the key consuming nations these days—has drastically come down, thanks to the high price of the precious metal.

“Gold is the talk of the town, agreed. But no one is willing to buy gold at this high price. So the problem is that new gold investors are not multiplying. Only the pockets of existing gold investors are bulging with more returns,” says Dubai-based bullion commentator Mark Robinson.

Mark has rightly said it. Will you buy gold at the exorbitant price of $ 1200 per ounce now? You would think twice. But you will be willing to sell your old gold for that price.

I have been getting dozens of e-mails these days from readers wanting to know is it the right time to invest in gold or will gold price crash and therefore should they wait to buy gold as an investment. One e-mail write said: “Dear David: Will I be able to sell my gold at $5,000 per ounce?”

I am re-producing some of these e-mails. Let us hope that gold prices would zoom to $5,000 per ounce to the joy of this voracious gold lover. Happy 2010!

Mark Dennis: markden@gmail.com
Dear David:
Gold price is moving up. I have been a passionate investor in gold. I love your positive comments on gold. If gold prices can double in 2009, why can’t it trip in 2010? Will I be able to sell all my gold for $5,000 per ounce in 2010? Too greedy, you would say. But I tell you gold is going to go up.
Mark

ΣΩΤΗΡΙΟΥ gsotiriou@hol.gr
Hello Mr. David
I want to ask which reasons may more influence the price of gold in 2010 (up or down). Exchange of dollar, gold possession of all people, discovery new deposits, ETF investment, inflation?


TOM LIU tliuall@yahoo.com
David,
I loved your article on Are speculators blowing up gold prices? With due respect, I really think you wrote a good article. It will be nice for you to write more about the "Brown Bottom" in 2000. I was so happy to get 1 oz gold coin for $270 when Gordon Brown unloaded most his British gold at $250.

The history always repeats itself. I am waiting for your next headline "It is time to buy gold at $5000/oz", then I will sell all my Gold to you at that price. May you have the last laugh.

Regards,
Tom Liu

Doug Rakich tremolo@cox.net
Very nice article Mr. Lew on gold prices and speculaton. I am something of a gold bug, and I take flack for it. My question to people who attack gold is a simple 2-part one. Do you think interest rates will rise? And, will this government / treasury / Fed RICO operation stop committing theft, fraud and Ponzi-printing? If the answer to both questions is no, and QE would seem to demand all of the above, then gold will rise. Unless the principles in this racket are willing to divest of their own hordes, which dwarf those of the central banks, gold will perforce continue to rise in the face of the competitive devaluations ongoing as paper pursues its intrinsic value. Doug

cooleddy1@aol.com
On gold reserves and George Soros
I have read your article about gold. My question is this: does what is occurring in the International Monetary fund result in the decline in the price of gold. Some people have been predicting that the price will rise to as much as $2500.00 an ounce. Since the price has recently dropped, and in view of Soros' involvement, is this a harbinger for a severe drop in both the short term and long term price of gold?

Tony Newbill ajironworks@w3az.net
Subject: Hold your Gold Positions the Commercial Shorts are caught in their psotions , and the Dow being flat is keeping them there !!!!!!!!!
I want to know why the SEC is not investigating CNBC and FT and the advisers it interviews that make recommendations and are not told to disclose their positions as this is required by SEC law , like this article shows both sides of the debate from advisory but no disclosures ....

I am noticing all these anti Gold reviews and recommendations from the top advisory people are coming with no disclosures on their positions , when they are touting such rhetoric about the barbaric metals , makes you wonder how they are invested , and I thought SEC law was full disclosure by these advisers in Public comment forums ???

Sunny Ng Wong ngyutong@hotmail.com
Subject: Need help and suggestion - Gold Trading
Dear David Lew
I would like to know your suggestion.I am doing trading with Gold and I bought several contract of Gold with the price 1177 USD / OZ (UP) Should I hold it till raise up ? Or better I release it ? and Sell Gold (Shot) What should I do ?
Sincerely yours
Sunny

Let 2010 bring lots of prosperity, glittering investment returns and the will to invest more in precious metals in the minds of all the bullion investors and the gold community in the world.

David Lew is a precious metals commentator with Commodity Online. You can contact him at info@commodityonline.com

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