Keeping track of gold prices is very interesting. From 1975 to 1998, a period of 20 years, the price of gold remained more of less the same. Then came the financial crash of 2000 and later in 2008. Its clearly visible from the chart that financial uncertainty creates a spike in the gold prices. This also has been a prolonged spike to the count of 13 years to date.
                                                                                                         

                                                                                         Graph courtesy - kitco.com
So what do you folks think?                                      
Would the gold price fall in the coming years or be in a rally for another decade.                                                
                                                     

Would the price of precious metals continue to go down?

Gold is a non essential commodity with very limited industry value. Where as silver has both jewellery and industry value. However both of these metals went through a 15% slide over the month (9, 2011).

The prices are expected to down a bit more and stabilize at $1500 per oz. That would be a more sensible price that the current inflated price. Since dollar has gained confidence the huge gold securities gobbled up by the big financial corporations would soon come into the market. When these gold flood the market the price would definitely drop to to $1400 per oz making domestic buyers buy more and more of gold. So $1500 per oz seems like a price, 6 months into the future. 

Gold Price

Gold price have increased exponentially in the past one month. In the volatile world market, gold have an intrinsic value, at least the investors hold-on to that belief. Monetary institutions around the world have been buying gold as a safe investment. However the demand has led to a bubble market for the gold. In 1980 an ounce of gold had a market value of $2400 (adjusted to inflation). Soon after, the gold market entered a major correction phase and many investors got burned.

Similarly at present,the gold price is hovering in and around $1900 - $2000 range. The economists are predicting a major correction in the coming month, Sep 2011. How ever similar warnings were issued in Aug 2011 and nothing happened.