mineweb.com / By Roy Friedman / December 19, 2012
Gold price targets of $2,000 an ounce and even higher are in sight as the global financial crisis and geopolitical concerns continue to foster short and long-term demand for precious metals.
Gold prices have advanced every year in the last decade and are poised for their eleventh straight year of gains in 2012. Next year, gold prices could reach $2,000 an ounce for the first time ever.
As we look forward to 2013 and beyond, I see signs that gold and the entire precious metals complex will remain key components in portfolios of small and large investors alike. Rising volume and open interest on the futures exchanges, ETF markets and over the counter physical market continue to indicate that investment demand for precious metals has never been greater.
In data released by the U.S. Mint, sales of gold and silver Eagle coins swelled in the past five years, versus the five-year period before that. In addition demand for physical gold in data compiled by the International Monetary Fund shows that central banks around the globe have been net buyers of gold since 2010.
The global financial crisis and geopolitical concerns will continue to foster short and long-term demand for precious metals. Thorny economic issues in the European Union, particularly in Greece and Spain, will be with us for the foreseeable future.