- live gold & silver prices
- up-to-the-second charts
- buy & sell bullion instantly
CONTINUED strong investment demand could be one of the factors that helps the Gold Price set a record average in 2013, according to precious metals consultancy Thomson Reuters GFMS.
GFMS, which published its 'Gold Survey 2012 – Update 2' Wednesday, says it expects gold will rise towards $1900 an ounce in the first six months of 2013. The consultancy forecasts that the Gold Price will average a record $1775 an ounce over the first half of the year, with ongoing loose monetary policy from the Federal Reserve and other central banks continuing to offer investors an incentive to Buy Gold.
"Although there is now growing speculation around the structure and longevity of the Fed's quantitative-easing program," said GFMS global head of metals analytics Philip Klapwijk, "policies of ultra-low interest rates across the western economies will persist in 2013. This will continue to support investor interest in gold in the absence of low-risk investments that can offer acceptable yields."
Despite gold investment by tonnage falling 1.2% last year, by value it set a record of approximately $87 billion, due to an all-time high average Gold Price for the year.
"[Although] gold has often experienced longer periods when it has suffered in line with a bearish commodities sector as investors have become risk averse...the much longer-term view...still points to gold maintaining a role as a hedge against risk," writes GFMS senior analyst Rhona O'Connell in the consultancy's quarterly newsletter.
"A good example of this is the activity in exchange traded instruments compared with the movements on the Comex," O'Connell adds, noting that Gold ETF holdings are far less volatile than the outright long position of Comex gold futures traders, which measures the total number of bullish bets.
Open a BullionVault account today and get the safest gold at the lowest possible price...
Buy gold at the lowest prices in the safest vaults today...
Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.