News Header


UBS 2012 Forecast: Gold May Average $2075/Ounce

Release Date: 
Tuesday, December 6, 2011

Tom Price, Global Commodity Analyst at UBS AG, provided his probable scenario for gold prices in 2012 based upon his the macro outlook for the global economy. "We are ‘screaming bulls' at UBS," he said. "We've got $2075 per ounce for 2012, and that's based almost entirely on an uncertain world and the fact that the European economy is struggling at the moment and that's going to persist." He added, "It's an annual average, but the first couple of quarters are critical…Our view is that $1700 is a nice low to come on at."

Gold was lower on Tuesday on fears over Europe's debt crisis. Standard & Poor's warned it may downgrade 15 euro zone nations, including France and Germany, if no credible plan emerges to tackle the crisis. France and Germany agreed upon a plan yesterday to create stronger ties in the euro zone and mandate enforcement of fiscal discipline among euro-zone nations.

"The market is currently being driven by politics and particularly by development in the euro zone. I expect there is now some caution with the meeting on Friday and the ECB meeting on Thursday," Peter Fertig, a consultant at Quantitative Commodity Research, said.

"Apparently, $1,750 is a tough resistance to break. The market is in need of strong fundamental impetus to break above this mark. Thursday could provide such an impetus as the ECB will meet for its policy meeting," Credit Suisse analysts said in a note.

(Sources: "PRECIOUS-Gold slips on Europe debt fears, downgrade warning," Reuters, December 6, 2011, 2011; "Gold to Reach $2075 in 2012: Analyst," CNBC, December 5, 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.