Morgan Stanley has named gold as its top commodity pick for 2013.
Merrill Lynch has stated that they expect the gold price to hit $2,000 per ounce in 2013.
The French bank sees gold hitting new record highs in 2013.
UBS is also bullish on gold. In early 2012 it boosted its gold price forecast by 50% citing ongoing global macroeconomic disappointments’ and stated that the metal would average $2,075 per ounce in 2013, up from an earlier estimate of $1,380.
Following the US Federal Reserve’s latest round of quantitative easing UBS analysts raised both their one-month and three-month gold forecasts to $1,850 an ounce, previously $1,700 and $1,750 respectively, saying this “sets the stage for the continuation of the precious metals rally.
Standard Chartered bank recently stated that the gold price could triple due to shortages in gold production. Whilst most gold price predictions are based on inflationary and crisis scenarios, Standard Chartered’s forecast takes into account the supply-demand equation in addition. The bank’s research team looked at the production levels of 345 gold mines and came to the conclusion that gold production will increase by only 3.6% annually over the next five years. The demand for gold has been growing at a much faster pace, driven by purchases of gold by Asian Central Banks.
Superfund’s Aaron Smith expects gold to increase by 50% to 100% by 2014, as measured in major currencies.
The CEO of BullionVault, Paul Tustain, recently produced a comprehensive presentation in which he explicitly stated his case for $3,844 per ounce gold.
Investments of any kind including precious metals bear a substantial degree of risk. The opinions of Chelsemore Mangement Limited (Owners of Gold Insight) should not be relied upon as any implied or explicit guarantee of return. We are not authorised or regulated by the Financial Services Authority to provide any investment advice and our opinions should not be construed as financial advice.
Company Registration Number 01945