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Investors should remain “overweight” in precious metals

Release Date: 
Monday, November 22, 2010

Gold and other precious metals will continue their rally in 2011 so investors should remain “overweight” in precious metals, according to the commodities research head of Societe Generale.

Central banks' economic stimulus packages and continued anticipation of the weakening dollar will influence gold to increase 11 percent within 12 months, according to Frederic Lasserre, who spoke on Monday at a briefing for reporters, according to Bloomberg.

"We might see some gold-price rally again because of the recent fears regarding sovereign debt, and also the impact it may have on the dollar-euro," Lasserre told reporters.

Gold has soared to record highs this month, which is partially attributable to the precious metal serving as a hedge against countries' wobbly economic states. Irish officials, most recently, spent the weekend negotiating a bailout package with the European Union and the International Monetary Fund.

Prices for spot gold have advanced 24 percent this year, with a high point of $1,424.60 per troy ounce on November 9. Palladium has increased 75 percent and was trading for as much as $714 per troy ounce on Monday. Silver, which has gone up 64 percent thus far this year, was valued at $27.8925 per troy ounce.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert 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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†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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