Gold May Top $1,000 in 3 Years

According to a report from Morgan Stanely, and posted on Bloomberg.com gold may climb above $1,000 an ounce in 2011 as global mine output drops, mining costs rise and demand increases.

Gold more than doubled in the past six years and reached a record $1,032.70 an ounce March 17 as the dollar slumped and oil advanced, increasing concern inflation would accelerate. In the past eight months, the precious metal plunged 31 percent as the dollar rallied, oil collapsed and the global credit crisis pushed the world toward a recession.

Many people are rushing to sell gold jewelry and getting paid more than they could have ever imagined. Looks like if those people hold on to their gold until 2011, they might get a lot more!

Gold Drops to 13 month low

Is the wild gold rush of the past year over? Today, gold dropped to a new 13 month low, below $700 an ounce. For people who want to cash in and sell gold, its likely that they’ll be getting substantially less than they would have if they were to sell their unwanted gold jewelry a few months ago.

However, with as volitile as the stock and commodities markets have been in the last few weeks, gold value could be an all time high again in no time. Waiting the market out to get even more cash for gold might be a good thing.

Gold drops below $800 this week

Gold sank to 1 month lows on Monday of this week.  The stronger dollar typically weighs on gold, which is often bought as an alternative investment to the U.S. currency. Weaker oil prices, which tumbled more than $5, are also undermining the value of gold and appeal as an inflation hedge.

Traders say they expect more rate cuts from the U.S. Federal Reserve. While in the long term any economic stimulation is likely to pressure gold, analysts say in the short run it would boost the appeal of noninterest-bearing assets like bullion.

Read the full story from on Forbes.com