In the past 10 years, investing in gold has sometimes been like a business that only makes money but never loses money. Gold prices have risen every year since 2001, with average annual gains reaching a respectable 18%. This year, however, that situation is being challenged. Bank analysts who are usually bullish on gold, while predicting that gold prices will rise to record levels, also warned that based on the latest consensus, 2011 may be the year when gold prices peak. Cailang.com updates the trend of gold daily, and experts answer questions online at www.cailang.com This expectation is based on the view that the momentum of the U.S. economic recovery will begin to gain momentum, which will force the Federal Reserve (Fed) to tighten monetary policy and allow bonds to and stock yields become more attractive. "As the economy gradually improves, real interest rates will rise, which will limit gold's gains," said David Greely, an analyst at Goldman Sachs in New York. "We believe that for gold investors "The prudent approach is to start preparing for gold prices to peak." Many analysts regard the changes in market sentiment since early January as a harbinger of the outlook for the gold market. Money has flowed into stocks and bond yields have risen as investors have become increasingly confident about the U.S. economic outlook and concerns over the euro zone's fiscal problems have eased. Gold, a traditional hedge against economic uncertainty, has been weighed down by this. The hot market that ran through the second half of 2010 and was based on fears of a double-dip recession has subsided. Some investors have begun taking profits. Gold prices rose 30% last year, hitting a record nominal peak of $1,430.95 an ounce in mid-December, but have since fallen 7.5%, falling to a three-month low of $1,322.70 an ounce this week. Bankers said the drop in gold prices reflected profit-taking by short-term traders rather than a mass retreat by investors. In fact, almost all traders and analysts believe that gold prices will hit new records this year. According to a survey by the London Bullion Market Association, respondents' predictions for new gold price highs ranged from $1,550 an ounce to $1,850 an ounce. Still, many are warning that the period of rising gold prices is over. In addition to Goldman Sachs, other institutions including UBS, Credit Suisse, Barclays Capital, Macquarie and precious metals advisory firm GFMS also predict that gold prices will It will peak late this year or early next year. Tom Kendall, precious metals analyst at Credit Suisse, said: "We will see a situation in the second half of this year: people adjust their focus on market drivers and the stimulus from ultra-low U.S. interest rates on gold prices gradually fades away." Investment Investors are beginning to heed these warnings. The number of speculative positions betting on lower gold prices in the U.S. futures market rose last week to the highest level since mid-2005, the U.S. Commodity Futures Trading Commission (CFTC) said. Overall, investors remain bullish on gold prices, but their position allocation reflects the lowest level of bullishness since July 2009. Those invested in gold ETFs (exchange-traded funds) have also reduced their positions accordingly. Over the past five years, gold ETFs have attracted massive capital inflows, playing a certain role in pushing up gold prices. SPDR Gold Shares, the largest such fund, suffered the largest outflow in its six-year history on Tuesday, driving its gold holdings to their lowest level since May last year. Goldman Sachs' Greeley said investors are already looking to protect themselves from falling gold prices by buying put options to limit their losses in the event of a market correction. Kendall added that "one or two" hedge funds have "started to consider longer-term exit strategies." "The initial sell-off may be severe," Greeley said, "but we don't think it will be as severe as it was in the late 1970s and early 1980s." Few strategists now recommend shorting gold. Gold demand from the region rose sharply in the first week of the new year as inflation picked up significantly in Asia. In addition, central banks have stopped selling gold reserves and have become important buyers of gold. In addition, some investors believe that the United States will face high inflation in the longer term. They argue that the Fed will not be able to successfully exit its "quantitative easing" policy. With inflation high, real interest rates will remain low even if nominal interest rates rise. In this case, investors will most likely continue to put money into gold. Likewise, gold's upward trend could continue if the scope of the euro zone's sovereign debt crisis widens, said Philip Klapwijk of GFMS. Some believe that debt-ridden U.S. states could trigger new financial turmoil.

“The market is beginning to believe that the global economy can easily wean itself off its reliance on cheap money,” said Daniel Brebner of Deutsche Bank. “We don’t entirely buy into that view.” Gold’s rally so far The fundamental reason is that new, unexpected, and destabilizing risks frequently appear in the economy. Factors that could trigger unrest still exist. There is a 4321 principle, 40% is used for food and clothing, 30% is used to pay off the mortgage, 20% is used as deposits, and 10% is used to buy insurance, stocks, funds, etc.

You don’t have to pay back the mortgage, so you can save part of it, and the rest depends on how you manage it