As the financial tidal wave threatens to swamp Europe, investors are becoming less risk averse looking for a safe haven in precious commodities.
Gold has been growing steady for almost 5 years. Experts believe the continuing threat to global economies could benefit gold prices. Edel Tully from UBS says “Gold reflects emotions, the fear about the current economic climate and fear about what lies ahead,” Tully adds that “people should be more proactive and be prepared to take profits” as a volatile era for gold will continue with “the average price for the metal reaching 2075 dollars per ounce in the next year.”
Since the beginning of 2011 the price of gold has risen more than 35%, on November 24 it was $1693 per ounce. According to analysts from FOREX MMCIS group, the gold price has soared as the crisis in the major developed countries escalates. Debt problems of the Euro zone and US are a clear threat to economic growth, and investors seek a safe haven in gold. FOREX MMCIS analysts along with other experts agree gold will continue to rise. “The price will start climbing from $2,000 per ounce at the beginning of 2012 and continue to rise to $ 2,500 per ounce.”
The demand for gold comes mainly from China and India and given that China's economy is buffering steady growth gold still has room to grow. Notably, in 1980 the price rose to $2,300 per ounce.
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