Is Gold About to Soar?

It may be time to get into gold again before the hoard starts pushing up the price and we end up chasing it for a much higher entry point.

This isn't built upon the idea of a possible stimulus happening sometime soon - although that would give it a nice push upwards - but rather upon how gold has been performing against major currencies.

Usually when gold is up against the majors, historically, not long afterwards it enters into a positive growth stage in price.

That has just happened over the last month, so gold should be poised for another upward run.

The good news is people are still largely negative on gold other than in relationship to the inevitable and upcoming implementation of QE3. But by time that happens everyone will be throwing money at gold and those late in the game will lose a lot of profits.

Obviously the key to making more money is to get in early.

With gold certain to soar again based upon stimulus measures alone, the inclusion of this currency signal, which has been historically wildly accurate and predictable, we could be on the verge of a huge upturn in gold.

And when the stimulus comes soon afterwards, it's unknown how high it could potentially go.

The currencies that gold is up against are the yen, U.S. dollar, British pound and the euro.

eBay (NASDAQ:EBAY) Faces FOREX Challenges in Latest Quarter

Even with eBay (NASDAQ:EBAY) is expected to increase margins and has strengths in several segments, all that could be negated by FOREX challenges, especially in relationship to the Euro and the British Pound.

Barclays (NYSE:BCS) said, "We are modestly raising core estimates for 4Q10 and 2011 GMV and TPV based on Marketplaces improvements both in the U.S. and International, as well as PayPal Merchant Services strength. Additionally, we are tweaking Marketplaces take rates higher and raising overall margins slightly. However, the impact is muted somewhat by the weaker Euro (-6%) and British Pound (-3%) relative to spot rates coming out of 3Q earnings more than a month ago, which also weighs on cross-border activity which accounts for roughly 20% of Marketplaces and likely more than that for PayPal. For 4Q10 we remain at PF EPS of $0.47, for 2011 we go from $1.81 to $1.85."

Barclays maintains an "Equalweight" on eBay, which closed Tuesday at $29.14, falling $1.09, or 3.61 percent. Barclays has a price target of $29 on eBay, raising it from $27.

Gold Trading at Record Highs in British pound, euro and Swiss franc

This last week had gold reaching its highest trading level against the British pound, euro and Swiss franc, as the potential for a sovereign debt catastrophe in Europe looms over the investment world and people and institutions want a safe place to have their money.

It seems the depth of the latest crisis isn't even comprehended by most, but it boggles the mind when start talking of countries like Portugal, Ireland, Italy, Greece and Spain being in extreme danger of defaulting on debt, with some being more exposed than others.

This has caused all currencies to be suspect, and that has resulted in the record high trading against the currencies listed above.

Gold is going to rise against many things going forward, as there's simply nothing else to take its place, as a large number of investors are increasingly understanding when reconsidering investing in the U.S. dollar as the place of safety.

This is why gold has been rising with the dollar, as investors are gravitating toward gold as their safe have more and more, and they should be.