As U.S. Global Investors updates its Periodic Table of Commodity Returns, and looks at “What the Next Decade Holds for Commodities,” a GoldSeek article asks if precious metals will regain their safe-haven status in 2012. It points out that “gold and silver haven’t yet benefited from the problems in Europe and instead investors have bypassed the precious metals and have flocked to the dollar. Geopolitical and economic concerns aside, the best chance for a metal and mining stock recovery in 2012 is for a rebound in monetary liquidity.
Some analysts are optimistic about gold in 2012, in anticipation of a boost to the metal’s demand from bond buying measures by the U.S. Federal Reserve and the European Central Bank. The median estimate in a Bloomberg survey of 44 traders and analysts is for gold to rally as much as 37 percent in 2012 to $2,140 an ounce. This may be an overly optimistic assessment, however, especially if the eurozone crisis escalates in the months ahead.
Gold’s best chance for success should occur when the European debt drama has been aggressively dealt with by Europe’s central bank and political leaders. Once investors’ nerves have been calmed over the eurozone debt drama we should see a reversal of the intermediate-term downtrend in gold and silver. This will occur when central bankers are finally able to coordinate a monetary stimulus designed to bolster the euro and stabilize the bonds of the major eurozone countries.”
Daily FX: Gold rally threatened by USD strength – Will QE talks time the scales?
Seeking Alpha: Talk of QE3 increases as the dollar rises – Time to reposition
Financial Times: Eye-catching ECB liquidity number du jour
Bloomberg: Euro leaders race to salvage rescue plans
CNN Money: S&P downgrades Europe bailout fund
CNBC: Marc Faber: Most Europe, U.S. ratings should be lower
Reuters: Europe Monday: Gold and silver gain slightly as stocks recover
Got Gold Report: Gold and silver prices find their footing
KWN: Keith Barron – Physical gold & silver to crush paper markets
SafeHaven: Gold comes alive
Tim Iacono: All the gold bugs in China
GATA: More traders notice gold’s regularly counterintuitive behavior
Silver Miners: The war against us
Time: Why the smart money was so dumb in 2011
Bloomberg: Apocalypse how? Dire 2012 forecasts