When Gold Begins to Sizzle - 6 Excellent Indicators For the Coming Gold Mania

The talk is when will gold reach its peak.

* When will you know if we've reached the 'mania' stage.

* How do we know when to sell.

* And how do we know if there's still time to buy.

When a market begins to sizzle the investing public will crowd in, but the contrarians will think it must be time to get out. Which stage are we at right now?

Here are some indicators to help you jump in the right direction

1. In April 5, 1933

President Roosevelt, signed Presidential Executive Order 6102 made it unlawful to own or hold gold coins, gold bullion, or gold certificates. The export of Gold for purposes of payment was also outlawed. Fear is growing right now that the same or similar restrictions could be imposed by the present administration if gold hoarding continues to grow. For this reason many buyers of gold are choosing to store their precious metals in the vaults of Europe, particularly London and Zurich.

2. Another indicator that the upward trend of gold is likely to continue

comes from the activities of central banks which are now becoming net buyers rather than sellers of gold. This change in buying activity is also confirmed by the level of official gold sales - used for many years to depress the level of the gold price - which have reduced considerably. The normal level of expectation for gold sales through official sources is around 500 tonnes per year. Last year it was only 150 tonnes, which could greatly effect the gold price level. Not only is gold more likely to rise, but at a faster rate if the level of price suppression has been reduced.

3. The economic woes of Europe are far from over.

With Spain, Portugal, and Italy still hanging on with massive debt levels, will Germany agree to bail them out in the same way they rescued Greece? The reaction of the German public would indicate not. If more bankruptcies are declared the likely outcome is for the healthy northern European countries to separate from the more profligate spenders in the South, signaling the demise of the Euro. This would be a signal for golds upward trajectory to accelerating.

4. When small mining stock takeover activity increases,indications are that gold/silver are expected to keep on rising. Right now there are a strong signs of increasing takeover activity.

5. Gold pundits are reporting that gold's price rise, against major currencies is accelerating. Gold has achieved a record level against the Euro, Sterling, the US Dollar, and even the Swiss Franc.

So how far is the price of gold likely to rise? Estimates vary. But $2000 in the fairly near future is not an unreasonable expectation. After that who knows! It could be a long and profitable ride if the state of the world finances are anything to go by.

So should we buy? The sensible advice right now is if you don't own any gold or silver, it is possibly safer to buy than to wait. Buy some bullion coins, or invest in a bullion ETF. Check our Gold Report on how to invest.

If you already own the precious metals, you may prefer to wait for a summer pull-back before increasing your holdings, though the way prices are rising, the summer doldrums may not be so obvious this year. Anna P. Best was based in Singapore for many years where she developed her interest in precious metals. Until recently Gold has not been an area the average investor would consider, but that has changed and suddenly there are so many opportunities out there to profit from gold and silver. Anna enjoys sharing her knowledge with other enthusiasts. She has prepared a complimentary report packed with facts which you can download at Link to Gold Report.