Gold Still Strong In 2010

Gold and Silver to Make New Nominal Highs While some are claiming gold has peaked

, Morgan Capital & Research, report believe that gold is still not near a top and will reach a new nominal high between $1,320-$1,450 .

Silver will outperform gold reaching $24 or higher as the gold/silver ratio dips towards 55. Remember, gold can perform well during periods of inflation or deflation. While I believe deflation is the greater threat during 2010, this will occur primarily in credit-based markets such as real estate. Cash-based markets such as precious metals are likely to experience inflation as record amounts of new money have been printed during the past year.

Look for more central bank purchases during 2010, as well as significant purchases from China and other countries that are eager to diversify away from dollars. The gold/silver suppression story will continue to gain steam and with more and more investors demanding delivery, pressure will increase on shorts and COMEX regulators. There will be some type of rule change or restructuring at minimum and the potential for default is possible. Lastly, the Dow/Gold ratio will decline after bouncing in 2009.

Energy Prices to Push Higher With the strengthening economy, increasing demand from China and India, plus declining supplies, I expect energy prices to move much higher during 2010. Oil will trade most of the year in the $75-$100 range, but will break above $100 for some time. I think natural gas will generate even greater returns than crude oil as it bounces off oversold lows. In addition, I expect clean energy companies to rebound during the 1st half of 2010 and think lithium and rare earth miners will benefit from this trend.

More investment demand for gold on way Gold Fields

By: Martin Creamer5th February 2010 JOHANNESBURG (miningweekly.com) There will be more investment demand for gold in 2010, says Gold Fields CEO Nick Holland.His view is that 2009 saw only the start of investment demand for gold and that the world would see more in the current year."There'll be continued growth of new funds looking to have a piece of gold," he tells Mining Weekly Online.It will be the continuing investment demand for gold that will be the main thesis behind the improving gold price, he adds.Jewellery demand will not be the solution to the gold price rising, "I think we have to make peace with that".Investment demand, he points out, is currently only 0,8% of the total funds under management to gold.While some say that the exchange-traded funds (ETFs) have run hard now and that they are going to be sold off, the reality is that for every one person wanting to sell an ETF, there are two or three people wanting to buy one.Even if gold investment demand rose from 0,8% of the total funds under management to 1,2%, a huge amount of gold would be absorbed."I would like to believe that we have a reasonable underpin where we are and that the gold price can go higher from here," he adds.Primary supply of gold, in his view, is going to continue to decline on the back of a dearth of exploration projects and a dearth of exploration dollars over ten years that is now starting to manifest itself.Also, mining cash costs are rising as quality deposits are replaced with low-quality deposits."All of this augurs well for the gold price," Holland says.Also, central banks are buying, not selling. "So, net, I think it's positive."Edited by: Creamer Media Reporter by: sackjames54

POST COMMENT

Why Are Charms The Best Pieces Of Jewellery? Uninstall Silverlight - How to uninstall Silverlight easily? How To Look After Your Gold Jewellery How To Care For Your Silver Jewellery 10 Things You Didn't Know About Diamonds Organize Your Jewellery With Easy Steps Fashion With Fashion Jewellery! Best Reasons to Select Handmade Jewelry Overcome Your Grief With A Memorial Jewelry Keepsake Earn And Use Your Gold Wisely With Warcraft Wealth Credit Suisse Gold Bars And Gold Iras Updated Details 4 Golden Ways To Get Your Ex Back Courting Customs Of Miao: As Unique As Their World-famed Silver Jewels