| |
Metal Markets in 2012 - Taking the Cautious Step Towards Investment
|
|
|
Recent reports by the Bureau of International Recycling shows that the metal markets are going to remain volatile in 2012. The reason for this is same as that of the downgrade in the stock and the forex market performance. The main reason for this is the weak economic condition of Europe and America. However, it cannot be denied that the factors that helped in establishing the metal values in the last quarter of 2011 are going to prevail in 2012 too. So, investing in the metal markets can still be a good choice for you.
Caution is the word to be followed
Thus, the main idea that you can follow so as to decide whether or not you should invest in the metal market is “caution”. Before investing in any of the precious metals, you will have to be sure about the value of the metal under the present economical conditions. You will also be required to consider if the value of the metal is going to remain the same or lower or increase in the future.
According to the recent reports, the demand with regards to the gold investment is resulting in the increase of the wholesale prices. This happened amidst the US Federal Reserve’s promise to maintain the Dollar interest rates at as low as zero until 2014. 11 out of 17 members of the Federal Reserve voted for the interest rates that are going to remain almost zero till 2014.
So, gold was seen to rise this week by 2.5%. It broke from $1,700/oz to $1,712.80 and this is considered to be its biggest gain in a day if compared with the gains of the last four months. Spot gold too rose by 2.7% to $1,710.44/oz.
As the gold values have been rising in the recent years, debates on the exact gold value have increased too. While a considerable number of investors view this metal as a wealth storage option, critics believe that gold is simply a bubble and has no significant value.
Now, if silver is considered, it performs mostly like gold. It too is considered to be a bubble and is volatile. It is due to these two characteristics that there seems to exist some high trading opportunity for this metal. At the beginning of this year, the silver prices surged to $1.66. This surge is considered to be the highest in three years.
Majority of the investors are actually turning to gold and silver and other precious metals for investment purposes. This is happening because the investors do not have much confidence in the fiat currencies throughout the world. The gold and silver trading does not simply involve the physical metals but also the stock futures of the mining companies and ETFs. There are various advantages of trading the precious metals. By trading the precious metals, you will be able to save your wealth from depreciation. Both gold and silver offer you the needed security against depreciation. Moreover, none of the precious metals are considered to be a liability for an individual.
According to the Professional Numismatists Guild or the PNG officials, gold is supposed to close really high in the first quarter of 2012. It is going to be in the range of as low as $1,475 per ounce to the high of $2,155 per ounce; with the mean average of $1,759.57. As for silver, it is as low as $24.35 per ounce to that of $57.50 per ounce with the mean average of $34.04.
Platinum on the other hand was seen to shed 0.03% of $0.50 per ounce. It had started the session at $1551.50 per ounce. But, now it is currently trading at around $1551.00 per ounce. This metal till now this year recorded at the high of $1555.75 and at the low of $1543.75 per ounce.
Palladium is another metal that saw a decline. It is currently trading for about $677.75 after it lowered 0.37% or $2.50 per ounce. This metal was previously set at a high level of $683.25 and as low as $677.50 after opening at $680.25 per ounce.
Nancy Smith
****
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
|
