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Bloomberg Survey: Analysts Bullish on Gold in 2012

Release Date: 
Thursday, March 15, 2012

Gold may gain 21 percent gain in 2012, according to a survey of analysts at the Bloomberg Link Precious Metals Conference in New York. The price of gold may reach $1,897 an ounce in by Dec. 31 from $1,566.80 at the end of 2011, according to the survey average. This would extend the number of year-end annual increases in the gold price to twelve years.

Today, gold was slightly higher in trading, at $1649.20 per ounce at 7:27 a.m. Pacific Time on the New York Spot Market with silver at $32.43 per ounce. Andrey Kryuchenkov, an analyst at VTB Capital, said, "we will have negative real interest rates through 2014. The Fed reiterated that so essentially, I feel gold is well supported."

"There are significant shifts going on in the world," commented Martin Murenbeeld, chief economist at Toronto-based DundeeWealth Inc., which manages about $100 billion. "Gold has become an investment, an asset class, and over time, we are only going to be building it up. The central banks are holding gold because they are not sure if the euro will remain five years later."

"Gold is the ultimate downside protection," Rachel Benepe, who helps manage $3.5 billion, including 17 percent in gold bullion, at the First Eagle Gold Fund in New York, said at the conference. "The future is uncertain, and we have no idea how we’re going to get through with this situation. That’s why we own gold."

Christoph Eibl, a founding partner of Zug, Switzerland-based Tiberius Asset Management AG, commented, "be opportunistic and invest in gold. Eventually, trust will come over to the fiat currency."

(Source: "Gold gets lift from consumers after price fall," Reuters, March 15, 2012; "Gold Seen Heading for 12th Annual Advance on Investor Hoarding," Bloomberg, March 14, 2012)

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†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.

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