I believe we will see a reversal of gold’s fortunes and new all-time highs, if not this year than certainly in 2013. Moreover, the now decade-long advance in the metal’s price could last another five-to-ten years given the global economic challenges that lie ahead.
Gold prices are falling because of a herd mentality seen among central bankers, economists and analysts which in turn spreads to investors. Central banks have favoured printing more fiat currencies to tide over financial crisis.
I am expecting gold futures to move up at least by 10% from the present levels and outlook for gold is still bullish mainly on account of high possibility of Euro zone breakup.
Each downturn in the precious metals market also removes more physical metal from the supply pool and places it into long term investors’ hands. This ultimately leads to less scrap metal and resold bullion coins flowing back into the available supply.
