Since couple of days the Gold and Silver prices are not in good shape and are going down and coming up adding volatility to the prices.
Now looking at the Equity market and current National and Global scenario it seems that if there is any asset quality which is safe then it has to be Gold , Silver or Platinum.
The sentiments across globe is negative and upcoming recession in Europe has increased the likely hood of additional rate loosing from FED, the European central bank and the bank of Japan.
It has also pushed back market expectations for the timing of the first interest rate hikes across Developed Markets central banks. In addition, Emerging Markets central banks are currently pursuing lower real interest rate paths in response to the recent risks emanating from Developed Markets.
Why gold looks bullish for 2012
Gold may be bullish in 2012 as Central banks by and large are expected to maintain loose monetary policies, with scope for more aggressive balance sheet use in the US and Europe; negative real rates are positive for gold and they should persist through 2012 in the US. Investors will likely remain net gold buyers. Reserve diversification into gold is set to continue, for instance by central banks. Gold demand from countries like China looks set to increase.
Why Silver looks bullish for 2012
BofAML also forecast $37/oz for silver in 2013 while $30/oz for the moment. There is a good upside potential in 2012 silver prices because of continued interest in the metal. Silver fundamentals have been improving in recent years for a host of reasons, including increased demand from emerging markets, somewhat reduced drag from the photography sector and higher usage from new applications. This suggests that gradual increases of silver quotations were justified.
Use in applications like solar panels should increase going forward. Demand from the photography sector has fallen steadily and scope for further large reductions in off take is limited.
Why Platinum looks bullish for 2012
According to the Bank, platinum looks bullish as production in South Africa remains challenged. Demand from auto catalyst producers has been rebounding, though Japan episodes of calamities caused temporary disruptions in global supply chains. The platinum market is too small to sustain several ETFs, and inflows into these vehicles are set to support prices.
source – http://www.wealthh.in