According to the author of this book gold still remains very bullish for both short term and the long term based on technical charts. According to a Bloomberg survey, gold should be poised for a 21% gain during the year of 2012. Now is a good time to buy gold coins while prices are down.
By Przemyslaw Radomski
Mar 20, 2012 1:00 pm
According to a Bloomberg survey at a precious metals conference this week, gold is poised for a 21% gain in 2012, extending its bull market to 12 consecutive years. Bullion may rise to $1,897 an ounce in New York by December 31, from $1,566.80 at the end of 2011.
They have plenty of reasons for optimism, despite the recent drops in price. Demand for gold has strengthened as Europe seeks to contain its debt crisis, and China has displayed a growing appetite for gold. Governments have kept interest rates at all-time lows to shore up growth. Central banks have been net buyers for three straight years, the longest stretch since 1973, according to World Gold Council data.
They are not the only ones optimistic about gold. The specter of inflation is making some turn to the yellow metal.
“By the time inflation becomes evident,” says Paul Johnson of the $14 billion Paulson & Co. hedge funds, “gold will probably have moved, which implies that now is the time to build a position.”
And just recently the Islamic Republic News Agency reported that Iran would begin accepting payments from its trading partners in gold. This move further reinforces the universal currency and store of value aspects of the metal. Iran already allows its trade partners to pay in their native currencies. It has also accepted payment in the form of goods from both India and China. It will now take payment in gold. The fundamental situation is clearly bullish for the yellow metal.
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