The Future

There are various theories, analysis and studies done by professionals in this field, world over. Vast majority of them refer to investments in gold and silver as positive. Infact a lot of the prominent names in the industry are very aggressive on the outlook of gold and silver prices. We have tried to bring to you some of the recent and important analysis on the future of bullion:

'Analysts at Goldman Sachs say gold prices are likely to continue their upward trajectory next year, but likely peak in 2012 on rising interest rates at $1,750 an ounce in 2012. Peter Schiff is on the record as predicting that gold will go up to $2,000. Jim Rogers said in an interview recently gold is going to go a lot higher over the next decade. If adjust for inflation it should be over $2000.'

'A Big Q: what is the downside for Gold and Sliver?

  1. A speed up in the US economy (I do not see US unemployment getting better until Y 2015) might slow the momentum in Gold but not Silver, because of its industrial many traditional and new applications.
  2. If the US Fed turns off the "liquidity faucet", not likely for some time to come IMO, there are lots of problems at all levels in the USA and the Fed Window will continue to be open at 1/4 pt to Zero rates to borrowers.
  3. Stabilization of the Euro, and
  4. The Indian and Chinese consumers stop buying Gold, also not likely.'

'$100 (Silver price per ounce) certainly isn't out of question, and we'll show you why. Silver today is more than just a way to preserve wealth. It's an investment with solid fundamentals.'

'Gold is on track to peak at an average price of $2,107/oz in 2014, says Standard Chartered, although a "super bull" scenario of the metal rallying to $4,869/oz by 2020 is still a technical possibility. Though the yellow metal is likely to meet some head winds in the form of monetary tightening and growing mine supply, demand from the key Indian and Chinese markets should prove the key price driver, the bank says. "We find that there is a powerful relationship between income-per-head in Asian emerging markets and the gold price, which suggests further significant upside for gold," it says. Spot gold -0.04% at $1,459.05/oz'

'The case for silver

Because silver is more than 17 times as plentiful as gold in the earth's crust, its use as money – both in coin and as a measure of value – is far more common in the historical archives as well. Whereas today, it holds much the same basic appeal as gold, but with four crucial twists:'

'Gold prices on this page show you values of gold in each of seven currencies, and over each of two periods - 5 years and 1 month.'

'Gold, silver and precious metals equities posted strong results for the fourth quarter and for the full year. The strength was underpinned by spreading investor concern to the safety of paper currencies, spurred on by the second round of quantitative easing announced by the Federal Reserve, and the ongoing sovereign debt crisis in Europe. These events, driven by deflationary market forces, have potentially compounding effects that seem likely to further undermine investor confidence in the dollar, the euro and other currencies.'

'China's secret plot to dump the dollar and 3 Surprising Places You Should Put Your Money Right Now to Avoid the Carnage and Prosper.'

'Ten year outlook on Gold'

Inside Job: Gold Investment Rationale Revisited - by Vince Lanci

Investing In Gold And Silver - by Warren Bevan

'Gold is an indicator of future velocity of money, in particular in the US. In other words, the gold price can be interpreted as a signal that the market expects the velocity of money to increase, thus raising future inflation.'

Views or opinions expressed in this article do not necessarily reflect those of the RiddiSiddhi Bullions Limited or RSBL Commodities Private Limited or any of their employees.

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