Predictions for Gold Prices in 2012 - Howard B Arnn (12/30/11)


In 2011, gold prices increased almost 13%. Prices started the year at about $1,400 an ounce and are ending the year at about $1,550 an ounce. Will this trend continue or are gold prices preparing for a decline in 2012? Many experts disagree on where gold is heading in the upcoming year. Citing everything from the economy to crises to interest rates, experts in the gold market have a wide range of expectations.

Tom Winmill, a Midas Fund portfolio manager, tells us to “view interest rates in a vacuum.” All indicators point towards continued low interest rates. Low interest rates make it easier for investors to field safe holding onto their gold. According to Winmill, this continued fragility of the economy along with low interest rates indicates the market is ready for gold prices to continue their price surge.

gold prices forecast for 2012

The current state of the economy, however, may not be beneficial for gold prices. George Gero, a consultant at RBC Wealth Management, points towards the Greece debt crisis. “So the behavior of gold during a crisis depends on the type of crisis and whether gold is needed for liquidity purposes to finance war or a bailout.” During the Greece debt crisis, gold prices fell $50 in a single day after an unfavorable development.

Despite the uncertain correlation between today’s economy and the price of gold, expert opinions compiled by Bloomberg point towards higher gold prices in 2012. UBS Ag released a statement saying gold will be “increasingly used as the line of defense against additional negative market outcomes.” The collective predications put the price of gold at more than $2,000 an ounce by the end of 2012. This would be a much better year than gold’s already impressive 2011 performance.

Although most forecasts show gold on an upward trend in 2012, the metal still stands on shaky ground. It is only certain that gold does hold a strong correlation with the economy. As long as the short-term future of the world economy remains uncertain, so will the price of gold.

For more on gold check out: Podcast: Dave Skarica on How Tax Loss Selling Has Created Buying Opportunities in Junior Miners and Solar Stocks - Mike Swanson (12/30/11)

Comments

There are so many mixed signals as we come to close - uncertainty is the King of 2012.

Who is Arnn? Why is this non-forecast featured on the home page, and not in a blog? Who is Tom Winmill, or George Gero? And "...expert opinions compiled by Bloomberg." HUH? BLOOMBERG?? Any night of the week (night on the Pacific coast, that is), take your pick while you browse the crawl -- "Gold rises on safe haven buying," "Gold likely to fall on perceptions safe havens are no longer necessary," "Euro worries bearish for gold, commodities," "Rally in Euro forms bullish background for gold," and on and on and on.

Mike, this is singularly the most UNINFORMATIVE blather I have ever seen on your home page. Usually, at least, somebody has a strong opinion. What gives? Do you have a new apprentice? Breaking in a new "expert"? This is just silly, a waste of space. Is this Arnn guy pimping for subscribers to some as-yet-unknown personal service? Or merely completing very badly a writing assignment for some introductory-level Economics course at the local junior college? Okay. He gets an "F" for wasting perfectly good cyberspace while having absolutely NOTHING to say.

I think you are 'WAY too nice. Which, I admit, is better than being a meanie. Still, when you run across these rain-soaked, starving puppies roaming the streets, take 'em to the Humane Shelter instead of giving 'em warm milk and a seat at the editorial desk. Hell, you have a reputation to maintain.

Any way, happy new year.

Happy New Year Dr. Gerald,

I dunno why but I love you mate, mind you, I ain't 'gay' or is that 'happy'! It makes me feel kind of special because with all my blather I have not been on the end of your 'big stick' just yet. Mind you, I'm waiting for the day. Your reputation precedes your disdain for what is in need of a whipping. I suppose Arnn is one of the blow-ins like me. I would enjoy getting in a bar and being slapped about the face a couple of times by the Dr. because when he told me why, at least I would learn something of value.

It reminds me of a bar guy 'Paddy' - a great guy but a hard-drinking womanizer - I met Paddy back in 2006 in Wuhan, capital of Hubei province. The 'gentleman' who wasn't, was a former Vietnam veteran and an Irish-Catholic-American founder of an orphanage in Hubei, China. He had set up an NGO foundation to help the kids there without parents and had even adopted a daughter who lived in the foundation.

We somehow got onto talking about religion and I told him how I wanted to 'walk on the water' as a young man. I shared with him some of the supernatural signs that woke me out of a slumber and led me to a church half way across the world in the Philipines. He then progressed to using intimidating insults and innuendos that if he ever heard me uttering such 'miracle' bullshit again he would pick me up and throw me through the plate glass window behind me in the bar. It was funny because I laughed my head off somewhat cheekily but I knew the bugger could do it if he wanted to. Though his true name escapes me at the moment his reputation doesn't.

The said pseudo-gentleman had a great technique of fighting. In a bar called Soho, where if you wanted a fight you would get one there with the Chinese, his reputation was in full flight. His technique was unique though, and one I will never forget. What 'Paddy' did was to bring them all to ground first - on this occasion about five of the nice looking 'pretty boy' Chinese scrappers - he would of course take the first scrapper's advances at him and roll back to throw first one over his head with his legs, then still keeping low in the shadows of the bar, take the next and the next down by leg sweeping and grappling 'judo' style until he had them right where he wanted them - at ground level. Would the term 'junk yard dog' be appropriate here, cause that's how Paddy won the battle at 'ground zero.' Once down there his fast moves, ,powerful punches, crushing elbows and head butts sorted those pretty boy 'martial artists' out in short time. Although he never told me I guess he had been in the tunnels in Nam.

Nevertheless, 'Gero' is short for 'geriatric George' of the jungle. Tom Wind-mill depends on a 'lot of hot air.' They are Arnn-a-lysts from somewhere beyond the 'black stump.' I know what you mean by Bloomer-bergs - as they call the events after the shot - weak as piss! It's just like the legend of Paddy as the Chinese would have talked about the aftermath left by the 'old boy'. Whoever thought an old vet could deal with five fancy artists in a bar scrap? I did the same thing in Soho one night but I was more polite as I only took one to task the first time, and then took another down on another occasion right in front of his 'no neck' Chinese mafia minder. You don't have to go looking for it as if you are with a Chinese girl they will find you. I might add, the girl is now my wife so I had a reason to scrap and protect her reputation. She cried, I fried them. The trick in that bar was to get out before the reinforcements were called in.

In my cafe bar one night - now sold at a profit - the technique worked a treat on a big Chicago lad with an equally big reputation. He only got up after I let him up from the cracks my elbows had delivered at ground level. One of the South African rugby players, whom I was minding at the time from the Chicago lad, said ' never underestimate the strength of an old man.' Damn it, I wasn't even fifty but I suppose to the sub-30s clan I was beyond the hill.

Hey no offense meant Arnie, but your photo reminds me of a scene from the movie 'Deliverance' - that's one hell of a cheeky smile you got there in your flannels. I'll post one of me someday as I look just as cheeky in my flannels. Maybe we can coast down the river with a couple of 'shooting irons' in a future life. (just joking) Don't mind Dr. Gerald, he seems like a good teacher; perhaps his bark is worse than his bite.

Now we know why Yeshua said, "I come not to bring peace but a sword."

Happy New Year boys! See you in the trenches.


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