Friday, January 27, 2012
Monday, January 23, 2012
Trillion dollar bazooka and $2,200 gold (Stockhouse)
1/24/2012 12:11:11 AM | Peter Krauth, Money Morning
262 Reads | 1 Comments
Even Standard Chartered bank's analysts expect gold to climb to $5,000
It's the beginning of a new year, and there's no shortage of big headlines...
Europe is on the financial brink, Iran is a powder keg, and precious metals like gold have retreated.
It's also a time when there is no shortage of financial forecasts.
Even though these kinds of predictions about the future can be tough to make, I'll admit it's kind of fun to look forward and see what the future may hold.
Like in December 2010, when I said I expected gold to reach $1,900/oz in 2011. Some people thought that I was crazy. At the time, gold was trading for just $1,390/oz.
But just nine months later, that turned out to be a pretty good call as gold hit a new high of $1,923/oz. before eventually pulling back.
Better yet, in January 2010, I even said gold would eventually top $5,000. Of course, most people thought that call was preposterous.
Now, even Standard Chartered bank's analysts expect gold to climb to $5,000.
Europe is on the financial brink, Iran is a powder keg, and precious metals like gold have retreated.
It's also a time when there is no shortage of financial forecasts.
Even though these kinds of predictions about the future can be tough to make, I'll admit it's kind of fun to look forward and see what the future may hold.
Like in December 2010, when I said I expected gold to reach $1,900/oz in 2011. Some people thought that I was crazy. At the time, gold was trading for just $1,390/oz.
But just nine months later, that turned out to be a pretty good call as gold hit a new high of $1,923/oz. before eventually pulling back.
Better yet, in January 2010, I even said gold would eventually top $5,000. Of course, most people thought that call was preposterous.
Now, even Standard Chartered bank's analysts expect gold to climb to $5,000.
Gold price forecast: Expect gold to hit $2200/oz. in 2012
Today, gold price predictions like those are becoming a lot more commonplace. For instance, Goldman Sachs Group Inc. (NYSE: GS, Stock Forum) recently set its 2012 gold target at $1,940/oz, while Morgan Stanley (NYSE: MS, Stock Forum) now expects gold to hit $2,200.
But what's more important is to actually understand the reasons why market experts believe gold prices will continue to rise.
In fact, to support my earlier $5,000 price forecast for gold, I maintained that one of the underlying reasons was that we would eventually face a currency crisis.
At the time I wrote:
At the time I wrote:
A Currency Crisis is Looming: The "PIGS" - Portugal, Italy, Greece and Spain (or "PIIGS," if you want to include Ireland) - aren't in very good fiscal shape. And they aren't alone. Iceland has already gone over the edge. The United States, the United Kingdom, and countless other economies are struggling. And that reality has ignited a crisis of confidence about fiat currencies in the minds of many investors. Money is nothing more than paper and ink, backed by the full faith and credit of the issuer. When investors find that their faith in the issuer is shaken, the value of that currency erodes. Additional sovereign-debt downgrades from ratings agencies are but one potential trigger of a currency crisis. Under such conditions, gold - the ultimate store of value, and the oldest existing form of money on earth - will soar as investors seek to protect their purchasing power.
That was two years ago...
Saturday, January 7, 2012
Gold prices may touch $ 2,000 an ounce in 2012: Study (Economic Times)
NEW DELHI: Gold prices are likely to increase for the third consecutive year and would touch a record high of USD 2,000 an ounce in 2012, said a survey.
According to the annual London Bullion Market Association (LBMA) survey which covered 26 precious metal analysts, the average forecast for the precious metal for 2012 is USD 1,766 per ounce.
The average forecast for gold this year (USD 1,766 per ounce), a 12.34 per cent rise from average price in 2011 and a 10.2 per cent increase compared to the price in the first week of January, 2012.
Out of the 26 contributors to the survey, 19 expect gold to cross the USD 2,000 per ounce level in 2012.
Gold soared to an all time high in 2011 on strong demand as precious metals are considered as a 'safe-haven investment' in times of economic turmoil and rising inflation.
In India, gold (99.5 per cent purity) crossed the Rs 29,000 per 10 grams-level to a historic high of Rs 29,155 per 10 grams in December, 2011 (one ounce equals to 28.35 grams).
While analysts predict a jump in gold prices and expect it to hit record high levels, they are not so optimistic about other precious metals like silver, palladium and platinum.
"If we compare the average 2012 forecasts with actual average prices in 2011, we can see that analysts are less bullish about the prospects for precious metals (excluding gold) during the next 12 months," LBMACommercial Director Ruth Crowell said.
Whilst analysts predict a rise in the price of gold (12.3 per cent) and price of palladium to remain broadly unchanged (0.3 per cent).
They are forecasting a fall in the price of both silver (-3.2 per cent) and platinum (-5.6 per cent).
Silver (.999 fineness) prices hit an all-time high of Rs 75,020 per kg on April 25, 2011, on heavy speculative and investment-driven buying in line with global markets, where the metal rose to a fresh 31-year high.
The LBMA is the international trade association that represents the wholesale over-the-counter market for gold and silver.
The aim of the LBMA Forecast survey is to predict the average, high and low price for each metal as accurately as possible.
http://economictimes.indiatimes.com/markets/commodities/gold-prices-may-touch-2000-an-ounce-in-2012-study/articleshow/11410586.cms
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