The gold standard has withstood the test of time as nations use this valuable precious metal for monetary exchange, jewellery and industrial processes. During tough economic times, gold becomes a more appealing purchase. Gold eagles sales, ETF investment and new gold exchanges show that the gold investment landscape is looking positive for 2013.
Gold Eagle Coin Sales
According to the United States Mint, sales of its gold bullion American Eagle coins was more than double in November 2012 (173,500) than in November 2011 (65,600). New investors are entering the gold market. Coin dealers expect even higher sales for 2013.
The wealthiest people in the world continue to add gold to their portfolios. These include Jim Rogers, George Soros and Marc Faber. Gold-traded ETFs had had 11 straight inflows in October 2012. Billionaire Mexican Carlos Slim invested in gold mines. The future for gold investment is bright.
Venezuela, Switzerland, Germany and Austria have requested the repatriation of their gold. During uncertain times, gold remains the medium of exchange. Many gold bars have been loaned out to investors who appreciate the value of this eternal asset.
Financial experts are concerned with the fiscal cliff of the United States and the effect on the paper dollar. This could lead to hyperinflation. Gold is a good hedge against dollar depreciation.
Germans Have Lived Through Hyperinflation
In the 1920s, the Germans lived through hyperinflation. Those without gold saw their paper money lose all real value. In 2013, Germans will continue to purchase gold.
According to the thelocal.de, as many as 69% of Germans own gold. The average holding is 117 grams (3.76 troy ounces) of gold. They are planning ahead for the collapse of the European Union.
The gold investment landscape is even more excited about the potential for rising nations, like Brazil, India and China to increase gold purchases for 2013. The Chinese deliver physical gold to buyers who purchase from their newly opened exchange.
Gold is a favorite currency of exchange for international commerce. Central banks trade in gold. During times of high inflation, gold is very popular.
Bloomberg did a poll of 700 bankers, traders and investors at the London Bullion Market Association conference in Hong Kong who expected a higher gold price between $1,849 and $1,920 a troy ounce for 2013.
Here are some more predictions for the gold price in 2013:
- BNP Paribas at $2,225
- Deutsche Bank at $2,200
- King World News at $2,500
- Morgan Stanley at $2,175
- Societe Generale at $2,000
- Thomson Reuters at $2,000
All of these factors suggest a very positive outlook for gold in 2013.