A Sneak Preview Of Gold Price For 2013

by admin on December 22, 2012

As we approach the end of 2012, it is also time for investors to take stock of their gold portfolio. The threat of recession on the world economy will still be present in 2013, and under such circumstances, how would gold perform?

For investors who are still unsure whether to put their money in gold next year, perhaps an analysis of the factors that will sustain demand for gold might in forecasting the price of gold for 2013. Firstly, more Quantitative Easing by the Fed will boost the demand for gold as governments worldwide followed in the footsteps of the US. The market is and will be flooded with cash that outstrips the injection of new physical gold into fray. As new gold for trading is less now, price will go up.

Secondly, the demand of gold from the China and India will hold up in 2013. Together, they account for almost half of the worldwide demand for physical bullion. Both these rapidly developing behemoths have a rising middle class that will be able to afford such luxury.

Thirdly, perhaps unknown to most investors, central banks worldwide are also purchasing gold as investment. In 2012, they have already bought 493 tonnes of gold, more than last year’s 457 tonnes.

Lastly, supply of bullion gold is diminishing as fewer mines were discovered now than a decade ago. Despite the best efforts of gold mine exploration firms, the fact that gold is a finite resource will begin to hit home. As a result, gold will become even more precious.

Most analysis done above will point, to a certain extent, that gold price will at least hold up or increase in 2013. We are still bullish on gold next year but we hope that investors like yourself will continue to observe the larger economic environment and make wise choices. For more gold investment options, you can visit our partner website as they offer secure storage for your physical gold.

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