3rd Party Gold Predictions for May 2012

Gold Predictions May 2012 

Here are some predictions on where the price of gold is going:

• Gluskin Sheff’s David Rosenberg told the Financial Times that gold “will go to $3,000 per ounce before this cycle is over.”

• Sean Boyle, CEO of mining giant Agnico Eagle expects gold to pass $3,000 within 24 months.

• Bank of America Merrill Lynch’s technical analysis team has argued for $3,000 and $5,000 gold in recent days.

• World Gold Council CEO Aram Shishmanian reportedly argued that gold would have to head to $3,000 in order for gold producers to stay in business.

• U.S. Global Investors’ Frank Holmes recently gave a presentation titled “Goldwatcher – $2,400/oz? $5,479/oz? $46,000/oz?.“

» Read our article: The Best Way to invest in Gold

Past performance is not an indication of future potential values.

• Citi technical analyst Tom Fitzpatrick is looking for $2,400 gold within 12 months. However, this differs from Citi’s commodities team who sees gold average $1,835 in 2013.

• Calling it the “currency of last resort,” Goldman Sachs is looking for $1,840 gold within six months. • Morgan Stanley’s favorite commodity right now is gold. Their commodities team sees it going to $2,175 by 2013.

Who’s Who in Gold Holdings

• Central banks internationally continue to diversify their foreign exchange reserves into gold bullion due to concerns about fiat currencies – including the dollar and especially the euro. IMF data shows that central banks were again net buyers in April with Turkey and Philippines being the largest buyers of gold.

• Mexico increased gold holdings by 2.92 tons to 125.5 tons in April. • Kazakhstan raised gold holdings by 2.02 tons to 98.19 tons in April.

• Ukraine upped gold reserves by 1.4 tons to 30.607 tons in April.

• Sri Lanka raised gold reserves by 2.177 tons to 7.807 tons in January. There is a delay in Sri Lanakan gold reserve reporting to the IMF.

• Central banks added 456.4 tons last year, the most in almost five decades, and will buy as much as 400 tons this year, the London-based World Gold Council estimates.