2013 Gold Price Projections
The end of the year is upon us and the latest gold price projections from financial firms, national banks and pundits have been rolling in over the last few weeks. GoldPrice.net has compiled a list of forecasts from the most world-renowned names in the gold industry. Below we have listed 20 projections in order of how well each respective 2012 projection fared, with the #1-rated projection representing the 2012 winner.
The highest gold price forecast on this list calls for a $2,200 gold spot price and the lowest estimate is $1,400 per ounce. The average of the 20 projections comes out to $2,009. For a free hard copy of this report as well as an obligation-free buy/sell/trade quote send us an email or call Gold Price at 1-800-767-1423 today.
20. The bullion bank Scotia Mocatta recently released a 2013 gold price projection of $2,200 per troy ounce.
19. The French Bank BNP Paribas stated last month that it believes that the gold price will rise to $1,865 in 2013.
18. ABN Amro has gone against the grain with its low-ball prediction of $1,400 per ounce gold prices in 2013.
17. Members of the London Bullion Market Association collectively forecast a gold spot price of $1,843 by September 2013.
16. The Financial Forecast Center believes that the gold spot price will climb to $1,761 by February of next year before falling slightly.
15. Credit Suisse expects the gold spot price to average $1,840 for fiscal year 2013.
14. The private bank Coutts recently predicted that gold prices would reach $2,000 before June 2013.
13. “The price of gold is likely to rise to a new record high above $2,000 an ounce in 2013,” says Barrick Gold CEO Jamie Sokalsky.
12. HSBC has repeatedly raised its 2013 gold price forecast. The company first projected gold to reach $1775 per ounce next year. A prediction of $1850 came next, and the bank’s most recent statement mentions prices of $1900 an ounce by the end of 2013.
11. Casey Research wrote in a statement that, “while many of us…don’t like making price predictions…it’s hard to ignore the correlation between the US monetary base and the gold price. That correlation says we’ll see $2,300 gold by January 2014.”
10. My average [gold price] forecast for 2013 is $1920,” says David Jollie at the Japanese commodities trader Mitsui.
9. This compilation of gold price predictions would not be complete without asking one of our own. Michael White, Head of Household Trading at Gold Price, told us that the gold spot price could go as high as $2240 next year, and White believes that gold will end 2013 just above the $2000 per ounce mark.
8. Chuck Jeannes, CEO of Goldcorp Inc., said recently that a $2,000 gold spot price is a definite possibility in 2013.
7. John Halloran is a Senior Gold Adviser at Certified Gold Exchange, Inc. Halloran foresees gold breaking the $2000 barrier in 2013 and going as high as $2200 at some point in the year.
6. Morgan Stanley expects gold to average $2,175 per ounce in 2013.
5. The CEO of Newmont Mining estimates that the price of gold in 2013 may go as high as $2,550.
4. Bank of America Merrill Lynch analysts are convinced that gold will pass the $2,000 mark before April of next year.
3. Citi recently increased its 2013 gold price expectations and the bank now believes that the yellow metal will average $1820 per ounce next year.
2. Deutsche Bank updated its gold price projection last month. Deutsche sees gold spot prices in the $2,000 range throughout 2013.
1. Bloomberg analysts have called for the gold spot price to reach $1,925 per ounce by the end of next year.
The aforementioned banks, investment firms and analysts may not agree on what gold will do price-wise next year but they do agree on the factors that will move the gold spot price. Such factors include:
• the level of fiat (paper) currency in circulation
• industrial demand
• the amount of gold mined
• results from audits of federal and private (i.e. mining companies, gold share stocks) gold holdings
• insecurity over the private banking sector’s solvency
• speculation over possible power-grabs by our government
• fear of war, inflation, deflation and total economic collapse
Large investment firms and household investors operate on different ends of the gold spectrum in terms of purchasing volume, but they have the same two motivating factors.
Investors like George Soros hoard gold and gold-based investments almost purely out of the desire to make money quickly. The most popular way to invest in gold for a quick profit is by purchasing large amounts of gold bullion bars or by using pool accounts, which allow investors to “own” gold without having to take delivery and pay for storage. Bullion bars and some bullion coins have low premiums over the gold spot price so investors can realize profits faster if the gold price goes up. Profit-seeking investors usually buy and subsequently liquidate their gold holdings within a 2-14 month span to avoid spot price pull-backs.
Gold price projections are often affected by investors’ need for security. Many investment banks and private citizens believe in gold as the premier way to protect one’s wealth. Investors flock to gold when global financial instability and political unrest become the norm. Gold bullion and rare gold coins let investors store large amounts of wealth in very small spaces for emergency purposes. Privately-held gold coins tend to serve as a way to hedge one’s portfolio in the face of economic uncertainty, because gold tends to move in the opposite direction of paper investments like stocks, bonds and interest-bearing accounts in terms of real worth.
No one can be certain how gold will perform in 2013 but many experts agree that the variables for higher gold prices are in place. If you would like a free report on gold’s performance during the last 10 years click the link below, or call Gold Price toll-free at 1-800-767-1423 to speak with one of our gold advisers about your thoughts on the future of gold prices.
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