By: GoldCore
2012 Gold Averages – Central banks are also almost certainly buying gold at these levels as they have been doing in recent months on corrections.
Absolutely nothing has changed regarding the fundamentals driving the gold bull market despite this most recent sell off.
Indeed, the sell off was expected – although the scale of the sell off has surprised some, UBS noted in a recent statement.
The fundamental factors driving the market in 2012 remain the same – the Eurozone and global debt crisis, negative real interest rates and the debasement of fiat currencies being some of the primary drivers.
Bullion banks remain positive on gold for 2012 with major banks predicting an average gold price of between 13% and 28% above today’s spot at $1,595/oz. It will be interesting to see if these forecasts get as much international media coverage as the poll of 20 hedge fund managers has
UBS have reiterated their bullish outlook for gold and believe gold will average $2,050/oz in 2012. This is 28% above today’s spot price of $1595/oz.
Goldman Sachs said overnight that gold will average $1,810/oz in 2012 – which is 13% above today’s spot price.
Barclays Capital have said this morning that gold will average $2,000/oz in 2012 – which is 25% above today’s spot price.
Gold will move higher due to “structural pillars of support” in an environment of negative real interest rates and rising inflationary pressures, as well as continued central bank buying.
All Things Considered – John’s Commentary:
The recent sell off tries ones mettle. Warren Buffet states “When others get scared, I get greedy…. And when others get greedy, I get scared”.
Stay the course. Add to your position, taking advantage of these price levels if you are able.
Keep your focus at least 12 months out. 2012 is going to be a very exciting year!
Quote of the day: “…paper money, gives the individual who owns it no independence, because it has no redemptive value. Under such conditions the individual citizen is deprived of freedom of movement. He is prevented from laying away purchasing power for the future. He becomes dependent upon the goodwill of the politicians for his daily bread. Unless he lives on land that will sustain him, freedom for him does not exist.” – Howard Buffet (Warren Buffet’s father)
