SocGen: End Of Gold Era

Another bank has jumped on the gold bear bandwagon: Societe Generale predicts sharp drops for gold, suggesting the end of gold's era. The basis forecast for 2013 gold suggests an average price of $1500 per ounce. By the end of the year the bank expect prices to hit $1375 per ounce.

To support their claim, bank analysts cite rising interest rates and economic optimism in the U.S. Also influencing their prediction is professional sentiment, which is currently not in favor of gold. They point to the roughly 140 tons of gold outflows that exchange-traded funds saw in the first quarter, noting that the ETF market experienced its largest monthly outflow in history in February.

Arthur McGuire, Vice President of Gold Coin, says, “It looks like another bank has jumped on the gold bear bandwagon, but this is just a fad that will be proven wrong in the long run. We are at a critical point in history in which everyone knows that the global economy is currently not in good shape, but people are simply ignoring this. Many pick and choose which facets of the market they want to pay attention to. For example, yes, ETFs saw massive outflows in the last few months, but physical demand is very strong right now. Economic stimulus and quantitative easing have given us a false sense of security, but it won’t last. The wheels that will move gold in the future have already been set in motion. The current low prices only make right now a perfect time to invest in gold coins and bars to protect wealth in the future.”

Gold Coin (GoldCoin.net)