GOLD WILL REACH 2012$ IN 2012 ?

MCX
	2010 CLOSE	2011 CLOSE	CHANGE	% CHANGE
GOLD	20728	27329	6601	31.85
SILVER	46217	51029	4812	10.41
COPPER	439.5	406	-33.5	-7.62
CRUDE OIL	4088	4296	208	5.09
ZINC	108.8	97.5	-11.3	-10.39
LEAD	115.65	105.5	-10.15	-8.78
NICKEL	1111.8	975.6	-136.2	-12.25
Above prices are in Indian rupees
COMEX FUTURES
	2010 CLOSE	2011 CLOSE	CHANGE	% CHANGE
COMEX GOLD	$1,405.90	$1,566.80	$160.90	11.44
COMEX SILVER	$3,051.30	$2,791.50	-$259.80	-8.51
COMEX COPPER	$436.25	$343.60	-$92.65	-21.24
NYMEX CRUDE OIL	$89.84	$98.83	$8.99	10.01

Gains in gold and silver prices in India were primarily due to a weaker rupee against the US dollar which fell 18.50% last year

Gold produced positive returns during both the first half and second half of 2011. But gold had it’s 3rd weakest performance for the second half of the year since 2003. Gold has tended to perform better in the second half of the year than the first half of the year, but 2011 was an exception.

Several Wall Street firms have recently published their gold price forecasts for 2012. Goldman Sachs predicts the price of gold will peak at $1,900 per ounce and average $1,810 per ounce in the coming year. Goldman attributes its bullish gold price outlook to further net buying by central banks and strong physical demand from investors, the ongoing negative real interest rate environment in the U.S., and continued European sovereign debt and global recessionary concerns.

The firm cautions that the biggest risk for the yellow metal is further strength from the U.S. dollar. As has been the case in recent months, investors could continue to view gold as more of a commodity than money and as a risky asset. Nevertheless, Goldman states that the factors influencing the yellow metal continue to point to higher prices in 2012.

Gold prices will rally again in 2012 to reach $2,000 to $2,500 per ounce according to a commodities strategist at Bank of America Merrill Lynch.

UBS have reiterated their bullish outlook for gold and believe gold will average $2,050/oz in 2012.

Barclays Capital says gold will average $2,000/oz in 2012 – which is 25% above today’s spot price.

John Embry, chief investment strategist of Sprott Asset Management, said the price of the yellow metal could possibly exceed $2,500 in the next 12 months.

At Sunshine Profits we also went out on a limb and guesstimated gold's high for 2011 at $1,800 and $45 for silver.

Australia's Bureau of Resources and Energy Economics forecast in its December quarterly report that gold prices in 2012 would still go up 17 per cent to $1,850 an ounce.

A survey of the Professional Numismatists Guild (www.PNGdealers.com), a non-profit organization composed of the country's top rare coin and bullion coin dealers, almost unanimously points toward price increases. Coin dealers’ predictions of where gold will close at the end of the first quarter in 2012 ranged from a low of $1,475 per ounce to a high of $2,155, with a mean average of $1,759.57. Their estimates for gold at the end of 2012 varied from $1,450 up to $2,575 with the average $1,976.22.

Predictions about silver in the first quarter varied from $24.35 per ounce to $57.50 with a mean average of $34.04, and from $23 to $130 with the average of $48.73 by the end of 2012.

The recent declines have left some gold investors feeling beaten, battered and bruised. But we have to keep in mind that over the long haul, gold is the ultimate safe haven and we believe that based on the underlying fundamentals which have not changed, it will go up in 2012. Our guesstimates for 2012 are $2,200 for gold and $50 for silver (silver is likely to outperform once it breaks through $50). Gold has risen 645% while the Dow Industrials has only gained 13% over the past decade. Gold has maintained its safe haven status for thousands of years and there is not another investment that can make that claim. No one ever mentions that in spite of the recent and much publicized decline, gold is still up $220.30/oz or 15.91% for the year. That’s almost double the gains in the Dow.