Silver Dollar Values Prices Zoom, Analysts: Gold Can Still Hit $2,000 And Higher In 2013

March 3, 2013 - PRLog -- The price of gold might have come below growing stress in previous weeks with issues that the Federal Reserve's loose monetary policy might be coming to an finish, but analysts have told reporters that the valuable metal can nonetheless break through the $2,000 mark in the long term. How High Will Silver Go? Learn More >> http://www.silver-dollar-values.com

"We're in a very great scenario. QE (quantitative easing) is going to go for six to twelve months. They're speaking about $500 billion to $1 trillion more in the method," Eugen Weinberg, head of commodity study at Commerzbank told reporters Monday.

Record low interest rates by central banks about the globe have resulted in unfavorable real interest rates - when permitting for inflation. Traditionally gold has an inverse partnership to interest rates and is utilized as a hedge against inflation, which can happen as a result of monetary stimulus.

"So a very positive atmosphere for gold," Weinberg stated. "But for now the demand for safe haven isn't there so most likely even the expert purchasers are going to be keeping out of the marketplace. But longer term we forecast the prices to rise above $2,000."

The valuable metal has remained a talking point in current weeks as many now really feel the spot price has stalled beneath $1,700. Inflation has however to materialize along with a slight change in rhetoric has emerged from central bankers. Rare Coins, Silver Coins, Gold Coins >> http://www.silver-dollar-values.com/SELLING-GOLD/

The Federal Reserve announced its last QE plan last month, but minutes from that meeting show that a number of Fed officials thought it could be suitable to slow or stop asset purchases nicely prior to the finish of 2013, citing issues about monetary stability and also the size of the balance sheet. The suggestion of a finish to its asset buybacks brought on the price of gold to fall more than 1 %.

"If the economy performs nicely in 2013, the committee will probably be in a position to consider going on pause with its balance sheet policy, St. Louis Fed President James Bullard told reporters on Friday.

Weinberg stated that commodities in general are set to get a great 2013 because the globe continues to develop, but other analysts are not as convinced.

"I believe that the commodity cycle is broken," Hans Redeker, head of international currency technique at Morgan Stanley told reporters Monday, adding that he believes peaks in prices for commodities have already occurred.

Martin Arnold, senior study analyst at ETF Securities, sees an upturn for gold in the longer term.

"With other central banks also flooding monetary markets with inexpensive liquidity (ECB, Bank of Japan, and potentially more in the Bank of England with new governor in 2013), the international monetary stance continues to become supportive of gold in particular," he told reporters.

"While cyclical development pick-ups might trigger short-term pauses in debasement policies and also the gold price rally, until real debt burdens are decreased, gold should stay in a structural bull marketplace." Most analysts recommend buying gold and silver. How High Will Silver Go? Learn More >> http://silver-dollar-values.com