Juerg Kierner, chief investment officer for Swiss Asia Capital in Singapore, sees 24% upside for gold prices and he says gold prices may rise above $2,000 an ounce. "Owning a credit risk free asset in your portfolio is the key and how much is the question" says Kierner. "For some people it is closed to zero for most it is less than 1% and we think people should boost it up in order to have risk free asset in their hands"
Although gold prices now are 10 per cent down compared to their 2012 highs, they have gone up 11 years in a row and will probably close 2012 in a positive territory. Current ongoing economic crisis is in the heart is the crisis of fiat money which is printed like no tomorrow and this process is supporting gold prices:
Although gold prices now are 10 per cent down compared to their 2012 highs, they have gone up 11 years in a row and will probably close 2012 in a positive territory. Current ongoing economic crisis is in the heart is the crisis of fiat money which is printed like no tomorrow and this process is supporting gold prices:
"Gold prices firmed on Thursday on speculation that central banks may be set to launch more bullion-friendly stimulus measures to boost growth, though mixed U.S. data that dampened expectations for imminent Federal Reserve action kept prices in a range.
They broke above $1,600 in late July on talk that both the Fed and the European Central Bank would take steps to stimulate their economies, but contrasting reports on the state of the U.S. economy have since kept it in a narrow range.
Further monetary easing would benefit gold by boosting liquidity and maintaining pressure on long-term interest rates, keeping the opportunity cost of holding bullion at rock bottom, as well as fuelling inflation fears and weighing on the dollar."
Source : Speculation over ECB, Fed action on growth lifts prices
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