UBS: Bullish on Gold and Silver
Source: Seeking Alpha, FP Trading Desk (2/5/09)
"Its gold price targets for 2009 and 2010 move from $700 per ounce for both years to $1000 and $900, respectively."
Its gold price targets for 2009 and 2010 move from $700 per ounce for both years to $1000 and $900, respectively. UBS' silver forecasts climb from $8.40 and $8.95 per ounce to $14.75 and $12.80, respectively.
UBS strategist John Reade told clients: "Purchases of physical gold have jumped over the past six months as investors' fears about the current financial crisis and the possible outcomes from government efforts to support banks and economies have intensified."
The European bank estimates that investment demand will double in 2009 compared to 2007, which will drive gold to an average of $1000. It expects this safe haven buying to decline in 2010.
The firm also noted that precious metals remain its preferred investments in a commodity context and it anticipates that gold and platinum equities could continue to outperform.