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$5,000 Gold Later This Decade?
Gold bullion may reach $5,000 per ounce later this decade, bolstered by rising demand from India and China and slowing production growth, according to Standard Chartered Plc.
Yan Chen, head of metals and mining for the firm, stated that “We are looking for the gold price to reach about $2,000 by 2014,” in a Bloomberg television interview. ”There’s a chance that the gold price can be as high as $5,000 by 2020,” as income growth in China and India fuel demand for the yellow metal.
Chen’s comments came in the wake of yet another new all-time record high for gold prices, which this morning reached $1,603.80 per ounce. Gold has been supported of late by the ongoing sovereign debt crisis in Europe, the uncertainty over the debt ceiling in the United States, and the prospects of a third round of quantitative easing (QE3) by the Federal Reserve.
The Standard Chartered strategist went on to say that “The gold market will be in deficit in the next couple of years. The central banks are now back buying gold massively, turning from net seller of gold into net buyer.”
Silver shines bright, to climb steadily in second half
SINGAPORE/MUMBAI: Silver prices, deeply dented but unbroken by a rout in May, will climb steadily through the second half of the year as investors buy the metal as an alternative to expensive gold.
Despite a swoon following a 60 percent rally to a peak in April, silver continues to lead the precious metals complex with a gain of 24 percent so far this year, outstripping gold’s rise of 11 percent, and retains allure for inflation-wary investors.
Silver , notorious for its price volatility, stung many investors with a drop of 33 percent over six sessions in early May from a record of $49.51 an ounce on April 28.
Silver prices have held above $32 since mid-May, and are set to move higher in Read more…
Gold hits record high near $1,580 an ounce
The price of gold reached $1,578.73 an ounce at 1130 GMT on the London Bullion Market (AFP/File, Sebastian Derungs)LONDON — The price of gold surged to a record close to $1,580 an ounce here on Wednesday, as investors switched into the metal for safety from the eurozone debt crisis, traders said.
The price of gold reached $1,578.72 an ounce by mid-day on the London Bullion Market, beating the previous record of $1,577.57 set on May 1. It later stood at $1,573 an ounce in afternoon London trade.
“Gold hit a new all-time high today as investors continue to fret over the European sovereign debt situation,” said analyst Ian O’Sullivan at trading firm Spread Co, noting that the metal has risen for eight days in a row..
“With Italy, Spain, Ireland and Portugal worries intensifying and now the Fed minutes suggesting some members were thinking about the need for additional easing, investors have just hit the panic buy buttons this week.
“We think that gold ma Read more…
Paper Markets Are A Joke: Prepare for Bullion Prices to Go Supernova
“I think that the prices will continue higher. I mean the amount of money printing is unbelievable. I just think you have to take that initial stand in terms of buying it. I use the James Turk analogy: just keep dollar averaging. We have gone up eleven years in a row, this year it looks like it will be no exception; I would certainly think next year will be no exception. If we ever have QE3 announced, I think gold and silver will just go absolutely bonkers here. And so I just think you have got to step in there and own it; we’ve had these fears all the way along. You know, $400, and $500 and $700 and $800 dollar gold, everyone was afraid it was a one-time thing. I don’t think it is a one-time thing, I think it is Read more…
Buy silver if price drops: Jim Rogers
Global commodities guru Jim Rogers says that Silver remains the hottest commodity these days. Despite the current downtrend in commodities in the recent weeks, the bull market in the sector is still intact, Rogers said.
In an interview to IndexUniverse.com, Rogers who is regarded as the most authentic voice on commodities investing in the world said that the downtrend in commodities is nothing unusual.
“This is the way the world works. If you look at oil, for instance, it has gone down over 50% three or four different times since 1998. That’s what markets do, and they will Read more…
Gold Should Break $1,600, Silver Near $50 by Year End –GFMS’ Newman
Gold should trade to just over $1,600 an ounce by the end of 2011 and silver should be flirting with $50 an ounce as governments will need to maintain a loose monetary policy despite the phasing out of stimulus packages in the U.S., according to the director of a major research firm.
Philip Newman, research director of GFMS, said in an interview on the sidelines of the International Precious Metals Institute’s Precious Metals Conference here there may be too much focus in the markets on the second quantitative easing versus a possible third program.
“I think irrespective if there is no QE3 that comes into the market, the U.S. governments and all other governments frankly, in a sense, still have to maintain fairly loose monetary policy given how slow or how stubborn the rise in GDP growth has been and continues to be,” Newman said.
He said that even though at times there might be a healthy increase in GDP growth, the underlying economy still has unemployment rates that are still stubbornly high.
“So, if you have that background then, the outlook for inflation remains fairly Read more…
Gold Price Nears $1,550, Time for a Gold Standard?
GOLD PRICE NEWS – The gold price, at $1,542.50 per ounce, traded near unchanged Monday morning despite modest strength in the U.S. dollar. While gold prices were flat, silver advanced higher by 1.5% to $36.79 per ounce. Global equity prices have been under pressure over the past month with the S&P 500 falling for five consecutive weeks. Weak data points in housing, manufacturing, and labor have all combined to heighten worries over the prospect of a double-dip recession. Precious metals, notably gold, have benefited from their safe haven qualities as investors seek to lower their risk profiles.
The strong performance of the gold price in recent years has led to a growing collection of calls for the United States to return to a gold standard. Steve Forbes, the billionaire CEO of Forbes Inc., wrote a piece in Forbes Magazine urging candidates for the 2012 U.S. presidential election to consider returning to some form of gold standard to support the value of the U.S. dollar.
Forbes began the article by stating that “Monetary policy is one of Read more…
What Would Fractional Silver Mean?
In Mid-may of this year, something curious happened, which I’d not seen before.
I’ve been following the course of where the dollar was heading and how it related to the pricing of gold and silver. Typically, I follow a number of sources for information, then try to wrap all those opinions into something concise, allowing me to share it with others. Most everyone following precious metals knows how GATA has been beating the drum about gold manipulation for quite some time now. History (past and current) is a very good place to start down the rabbit trail.
Informed people (like Paul Craig Roberts, Bob Chapman, Gerald Celente, Robby Noel, Lindsey Williams) have also helped shape a number of my opinions and speculations regarding where this economy is heading. Again, these are all very credible individuals who’ve been reporting on “real” financial issues for a number of years, if not decades now. And, even though it can be a bad habit, tune into the mainstream media to hear what they are trying to make the public believe for that moment. Every so often, they slip and Read more…
China Prepares To Launch Gold ETFs As Utah Becomes First State To Make Gold And Silver Legal Tender
Following Friday’s news that China has now surpassed India as the world’s largest buyer of gold, it is becoming increasingly obvious that the country is trying to capitalize on the popular interest in the precious metal by transferring the trading infrastructure away from US to domestic capital markets. First, it recently launched a 1 kilo gold futures contract on the HK Merc in an obvious attempt to undermine the Comex monopoly in the space, and next it seems that China has the GLD plain in its sights, as it plans to start exchange-traded funds, tapping rising demand in China, the world’s biggest investment market for the precious metal. Often blamed for the recent volatility in the price of gold, precious metal ETFs have been primarily an instrument available to those with access to the US market. That appears to be ending, and with an entire nation suffering from gold fever (as inflation continues to be goalseeked by the China politburo above expectations in what appears to be a programmed attempt by the Chinese central planners to push its population into gold hoarding) and about to be offered a simple way of investing in (paper) gold, it is likely that the price of gold (and soon thereafter all other commodities) will see unprecedented spikes in price in either direction as millions more are given direct exposure to trading the non-dilutable currency equivalent.
From Bloomberg:
“There are some complexities, as the central bank is in charge of gold management, while we still need to go through the procedures for launching new exchange products,” Wang Zhe, chairman of the bourse, said at a Shanghai forum. There is no timetable and the exchange is working with regulators on the plan, Wang said. China is the world’s largest gold producer and second-largest in overall consumption.
China doesn’t have gold ETFs and investors usually choose to buy physical gold, or invest through contracts traded on the Shanghai Gold Exchange, the Read more…
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