Average Gold Price to Rise Almost 30% in 2010
Source: Mineweb, The Bullion Desk (1/8/10)
". . .we foresee increased interest in gold from the investment community with faith in fiat currencies undermined"
Ross was the fourth-best gold forecaster for 2009 with a price average of $988 per ounce, according to an annual poll run by LBMA.
The LBMA survey includes forecasts from leading industry analysts for gold, silver, platinum and palladium from banks and other specialist institutions. Following are Norman's 2010 forecasts (USD/oz.).
High $1,425 (record level)
We forecast firm yet volatile prices for gold in 2010. We are concerned that the massive government stimulus packages via quantitative easing, paid for with borrowed and printed money, are having only a relatively modest impact on growth as bank balance sheets may take longer to repair than widely expected. As a result, we foresee increased interest in gold from the investment community with faith in fiat currencies undermined.
High $21.50 (highest since 1980)
Despite the parlous state of global economic growth, we expect silver to rise in 2010 based on tight physical supplies while also benefitting from increased investment demand in line with gold. These gains will come despite only modest growth in fabrication demand, we forecast, as investors move towards hard assets for wealth preservation and risk diversification.
High $1,900 (highest since July 2008)
Platinum prices should stage a further recovery in 2010. Increased vehicle demand in Asia will compensated for poor auto demand for vehicles in developed nations. The launch of the platinum ETF in New York should also keep the market very much on the bid.
High $625 (highest since 2001)
After a stellar performance in 2009, we expect the strong rise in palladium prices to continue in 2010 as available stockpiles become depleted. Restocking by many of the major automakers will also continue to keep the market firm.