Generally speaking, Stephen Briggs, senior metals strategist with BNP Paribas, says precious metals will trade higher in 2012.
Gold specifically is expected to make some bold moves and stretch to further historic highs due to unstable economic conditions across the globe, in Europe especially.
As you may recall, it was the heightening fiscal fears surrounding the Eurozone sovereign debt crisis that pushed weary investors to seek gold as a “safe haven” late in 2011…
Thus, gold hit a historic $1,900 this past September.
While most experts anticipate Europe’s economy to remain flat (yet without full-blown disaster), they believe overall global economic growth will be just over 3 percent.
While some swings in the gold market are expected in what is likely to be another volatile year for stock markets, analysts are nearly certain that economic uncertainty will keep gold demand unusually high.
As we trudge farther into 2012, counties like China may still see some strong economic growth, despite modest growth from most other nations. Thus, China’s gold imports are perfectly set to remain bullishly strong.
Because of this, the demand for precious metals will experience an upward trend around 5 percent (give or take a bit depending on a few variables including which metal is being referenced.)
When miners and analysts were asked for their predictions of where they see gold prices settling by the end of this year, answers ranged from $2,500 to $1,350.
Brittany Stepniak – Wealth Wire – Friday, January 13th, 2012