News Header

 

Analysts Give Long Term Outlook for Gold

Release Date: 
Thursday, December 15, 2011

Gold prices recovered from yesterday's lows in morning trading on the New York Spot Market with gold rising to $1589.40 per ounce as of 6:33 a.m. Pacific Time. Silver was trading at $29.17 per ounce.

Negative investor sentiment on Europe has recently been driving the dollar higher while the gold price has trended lower. Several analysts, however, offered positive longer-term outlooks for gold.

According to UBS, gold is one of the top commodity picks for 2012, since "most of the factors that pushed gold higher in 2011 are not going away." The Swiss bank expects gold to average $2,050 per ounce next year.  "So long as uncertainty abounds, gold has a fighting chance of outpacing many asset classes," UBS analysts including Julien Garran wrote in a report yesterday.

"Investors with a medium- and long-term view are remaining loyal to gold, and gold ETFs are still showing no outflows. In our view, bargain hunters are soon likely to take advantage of the low price levels," Commerzbank analysts wrote in a note.

"We remain bullish on the long-term outlook for gold and comfortable with the relatively modest position that we currently hold for the time being," Charles Morris, Head of Absolute Return, HSBC Global Asset Management, wrote in a note.

(Sources: "PRECIOUS-Gold rebounds on weak dollar, caution remains," Reuters, December 15, 2011; "UPDATE 1-Investors' cash grab shreds gold's safe-haven status," Reuters, December 15, 2011; "Gold Extends Rout as Haven Investors Target Dollar on Europe," Bloomberg, December 15, 2011)

News Footer

 

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.