News Header

 

GFMS Says Gold May Reach $2000/oz in 2012

Release Date: 
Thursday, March 22, 2012

Gold was lower along with equities and commodities following disappointing manufacturing data from China and Europe. Gold was trading at $1636.80 per ounce at 7:49 a.m. Pacific Time on the New York Spot Market with silver at $31.60 per ounce.

China's manufacturing activity contracted during March for a fifth straight month. The overall rate of contraction accelerated with new orders at a four-month low. China's manufacturing sector consumes a large amount of natural resources. As such, slowing growth tends to exert downward pressure on commodities.

Philip Klapwijk, Global Head of Metals Analytics for Thomson Reuters GFMS, believes gold may peak at $2,000 per ounce in 2012 and average $1,800 per ounce. With current or increased levels of investment demand, prices have the support to move higher, he indicated.

(Source: "Gold futures lower in wake of China data," MarketWatch, March 22, 2012; "PRECIOUS-Gold sluggish after China factory activity falls," Reuters, March 22, 2012; "PRECIOUS-Gold hits lowest since mid-Jan, investors back off," Reuters, March 22, 2012; "Gold to average $1800 this year despite big supply surplus – GFMS,"MineWeb, March 20, 2012)

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.