GOLD TO RISE BY 38% IN 2012 SAY MORGAN STANLEY
17-Jan-2012Gold had a bad year in 2011 - in fact we only made 11% (tax free if you stay within the CGT allowances).
It's not bad is it? Anything that makes 11% in a bad year is all right in my book.
But how will gold perform in 2012?
Well, Goldman Sachs have announced their expectations for the yellow metal over the next 12 months and predict an end of year price of $1,940.00. If they are right that would mean an increase of around 20% this year. But over at Morgan Stanley the optimism goes deeper with their announcement that they expect gold to rise to $2,200 which would mean an increase of around 38%. If they are right there will be much rejoicing amongst my members.
Guessing the gold price is always a fools errand but if ever there was a time to be bullish surely it would be when the global economy is collapsing under the weight of unmanageable debt, currencies are being printed as if they were made of paper (sic) and major countries in the West are now having their credit ratings cut on a regular basis.
But then I read that gold prices may go down this year and that some of the big players have already taken their money off the table. Maybe the big players can afford to but we can't. Entry and exit fees and the speed with which we can move make it a different game for the average investor who typically needs a year or two to build up their position as funds become available. if Goldman Sachs are right with their prediction it will be good for all of you who have already taken a position. If they are wrong it will be good for those of you still trying to build up your position.
In the long term I only see good news for those people sensible enough to take money out of the bank and take a chance with gold - and indeed silver.
Sorry its the same message but this is our eleventh straight year of gains. When you keep winning why would you walk away from the table?
Barry
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