Gold has posted gains for the past 12 years and every indication this trend will continue in 2013 is there. Although there are many reasons gold is on the right track for another positive year, we will examine two reasons for this below – one new and one ongoing.
The LBMA Survey
The London Bullion Market Association is comprised of many savvy investors, traders, and analysts. The LBMA has a deep understanding of the commodities market as its global client base is comprised of central banks, private sector investors, refiners, mining companies, and more. In a recent survey of 23 participants from across the globe, the forecast for gold looks promising. According to the averages of the participating companies’ projections, gold may rise as high as $1913.87 per ounce and average close to $1753.00 for the year.
Also according to the survey, gold should see gains between 5% and 14% for the year. View the entire survey here. Keep in mind these are projection-based average prices throughout the year, however when this many experts in the field are forecasting gains, it is clearly a good sign.
Inflation and Demand
As the value of paper money decreases, the value of gold will increase. With ongoing inflation in Europe, China, and America gold will continue to edge up proportionally, as it has for the past decade. The economy has been showing signs of improvement, but this is by no means an indication that inflation will come to an end. This is exactly why gold makes for such a great long-term investment. As long as inflation exists, so will gold as a safe haven investment.
The demand for gold is still strong, as India, China, and even Brazil are actively buying more and more gold. As we move forward into 2013, it’s highly doubtful any of these countries will stray from this trend. Naturally as the demand for gold increases so should the price. Inflation and demand may seem like elementary topics, yet they should not be ignored as we look at the coming year.
Take Action Now:
What more will it take? 23 bullion experts are giving you hints, basic economic principals, and are also on your side – so what are you waiting for? Make gold bullion part of your investment portfolio today. Give us a call today to get started. Allow our knowledgeable staff to answer any of your questions today.
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.