Tuesday, December 13, 2011

Guest Post : What to expect from the gold market in 2012

The gold market has been very turbulent this year with prices rising and then falling like humps on a camel. The lingering fallout from the global recession and the newer troubles in the Eurozone have meant that safe haven investing has become far more common, which has increased the price of gold.
Whilst this article is not designed to offer advice on gold investments, as reputable cash for gold buyers, we too have to keep an eye on the gold price to ensure our customers are getting a fair deal for their unwanted gold jewellery and silver items.

So what’s next for gold in 2012?

It’s hard to give a definitive prediction on the future of gold without taking into account some of the differing viewpoints.From looking at some of the research, it is very clear that commentators seem to be split into two camps:
Camp one: Gold prices will rise higher

These analysts speculate that the continuing failure of the Eurozone will push gold even higher in 2012. Marketwatch.com thinks that although gold fell spectacularly in September it is still going up in price albeit in a rather more erratic fashion than has been seen since the last gold price peak in 1980.

Camp two: Gold will become a risk asset

Speculation amongst these commentators is that gold has risen so much in price due to temporary factors that it has (will) become a “risk asset” A risk asset is something that is bought initially for a high price but is vulnerable and could fall in value at any time.

For example, a lot of homeowners realised in 2009 that their homes had become risk assets. This meant it was not financial help viable to sell their homes as they would actually lose money rather than gain a small profit. When selling a home that you have modified and possibly even extended you expect to make money from the experience.

Investing in a risk asset is dangerous, especially now; if gold becomes considered a ‘risk asset’ it could put people off investing in this commodity and thus the gold price will fall.
 So what is likely to happen to gold prices in 2012?

Let’s look at the facts, the Eurozone troubles could continue well into 2012, which could push prices up more or keep them at an even keel. Remember that it is increased demand that pushes prices up. Financial troubles often make investors retreat to safer investments like gold. 
Another fact to consider is that demand for gold from Asia is constant, particularly at certain points in the year like wedding season and Diwali. Gold has great cultural significance to many Asian and African cultures. This will keep prices up, particularly if gold continues to be seen as a safe haven investment due to the troubles.
 The gold price chart has rarely looked more erratic and jagged; prices could go up but they are also likely to fall just as quickly, perhaps even lower than before. Do you really want to take that kind of risk with your hard earned money?
 Even if you’re not a big time investor in gold bullion and have a few necklaces you’d like a cash for gold offer for, now is the time to cash in! Selling gold for cash is profitable right now.
So why not cash in by heading across to http://www.postgoldforcash.com today.

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