While gold prices have pulled back a significant amount in the past week, the yellow metal is still on an uptrend, trading at over $1600 per ounce.
As highlighted by an article from Forbes.com, while Gold investors in the U.S. may still doubt whether fundamentals are in place for the yellow metal to continue its decade-long rally; Chinese authorities definitely aren’t.
Chinese gold demand, both retail and financial, has surged as of late, with gold consumption doubling to about 20% of global supply in the last decade and reserves climbing to 1,054 tons, or about 1.8% of its foreign exchange reserves.
“No asset is safe now. The only choice to hedge risks is to hold hard currency – gold,” said Zhang Jianhua, head of the People’s Bank of China’s research bureau.
China has the right idea in holding gold.
The forecast for gold to return to seeing a “two” as the front number in 2012 is shared by several investment banks. Morgan Stanley, TD Securities, Bank of America-Merrill Lynch and SEB Merchant Banking are among some of the banks who see gold either averaging above $2,000 or at least trading to that level at some time during next year.
So what are you waiting for?
With China recommending its citizens to increase their gold holdings and several banks predicting gold to hit $2000/oz in 2012, now is the time to buy gold. As we say here at Capital Gold Group, you don’t wait to buy gold, you buy gold and wait.
“Buy gold and wait.” I don’t think this has ever been better advice given our current economic landscape. Unfortunately, most people are deaf to the first half of that and are simply ‘waiting.’ As has been proven time and time again, those who try and ‘wait it out’ are also the ones simply forgotten by history…
In hindsight, price decreases in December appear to have been based upon technical factors rather than the true fundamentals.
Everything is in place for gold at $2500-3000 within the next 12 months. One could not hope for a better buy-in opportunity at approx 15% lower from the 2011 highs
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JOHN Q PUBLIC TO PAY MORE ….Concerning the mounting US dept ,Sanders , former head of mortgage-bond research @Deutche Bank said”if rates start going up,somebody’s going to have to pay the tab and you know who that is :John Q Public ………..