Weekly Gold & Silver Market Recap – 2/8/2013
GOLD OUTLOOK POSITIVE IN FLAT MARKET
This week was lacking any major events to drive the Gold prices up or down, keeping the price of Gold within a tight range all week. Even without any major market indicators, many economist are very positive on Gold investing.
In a recent interview with CNBC Harry Colvin, director and senior economist at Longview Economics said, “Everyone is always bearish at the lows, that’s the time to buy it, we’re going to get a good rally this year I think.” He feels that Gold is poised for a good rally regardless of inflation. Colvin added, “Gold’s gone sideways for sixteen months, that’s because the balance sheet in the Fed has gone sideways for the last sixteen months. The balance sheet is about to expand rapidly. And with that we’re going to get a rally in the Gold price, it’s going to go hard this year and probably into the next.”
Dundee Wealth economist Martin Murenbeeld is very bullish for Gold. Murenbeeld recognizes how central banks have been interested in holding the yellow metal for some time now and anticipates they will only acquire more in the future. “It is our view that central bank Gold purchases will continue for many years to come. Indeed, it is our view that Gold is reclaiming its historic role as an official financial asset. Our baseline scenario has central banks buying Gold in size (500 tonnes per annum) for at least the next five years,” Murenbeeld noted in a recent article.
PIMCO’s Bill Gross picked Gold as his number one investment for 2013. Gross said, “The real risk to the financial markets is the marginal proclivity of investors to put their money in real assets, or under the mattress. Thus, my first recommendation is [an investment in Gold].” Felix Zulauf of Zulauf Asset Management said, “It’s a special sign of our times that the head of the leading bond fund picks Gold as his first recommendation.”
PLATINUM PRICES INCREASE THIS WEEK
While Gold and Silver prices stayed relatively calm all week, Platinum prices showed positive gains. On Wednesday, as Gold stalled, the Platinum price was up 1.5 percent as concern over production output in South Africa (the world’s largest extractor of Platinum) and a positive global economic growth outlook increased the demand for the largely industrial metal. With equities markets and industrial commodities rallying since the beginning of the year, Gold has taken a breather as the metal awaits more strident news to break it free from its current range. Due to the rise in price, Platinum seems to be getting more attention from analysts. Strategists at Commerzbank said, “Given the concerns about further production losses in South Africa, we expect Platinum to continue its advance and maintain its lead over Gold.” Gold isn’t completely under the radar, however, as the majority of voters in a recent CNBC poll showed that they were still buying the yellow metal.
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