US gold prices have been increasing at a rapid rate. They have increased by one hundred percent in only the past few years. Some think that the US gold price so high, it must be sitting on a bubble and that this bubble is about to pop. This is not so. Gold prices are strong and are only going to increase. There are a variety of events going on to support this.
US gold prices are as influenced by the laws of supply and demand as any other commodity is. Nowadays the supply of gold is down in the United States, and US gold prices are more subject to demand influences since gold is in short supply.
Due to the global recession, the dollar is decreasing in value and interest rates on US Treasury bonds are extremely low. In this situation gold prices go up. People want to invest in gold because it presents a more attractive investment than keeping their money in cash or investing it in an ultra-low yield Treasury bond. Couple this with the current supply shortage, and you have an increase in US gold prices.
The US supply of gold is increasing at one of the slowest rates in history. It is said that the gold mines are on a downward production trend. The gold that was close to the surface has been already mined. Now, the cost of mining of gold is increasing since all of the gold is being mined at a greater depth than before.
Here is the evidence that discredits the claims of those who say that US gold prices are going to fall drastically. Some analysts believe that some people should invest in gold, because the gold prices are preparing to rise to monumental highs. The time has never been better to invest in US gold.