Gold And Silver Prices To Continue Their Rise

Posted by admin on Friday, July 22nd, 2011

Newedge USA LLC are predicting gold and silver prices will continue their upward momentum through the rest of this year and beyond. They say that investors will see a 13% rally in gold from current levels to $1800 an ounce by the end of 2011. They are even more bullish about the prospects for silver, seeing the price almost doubling by March 2012, with a target price of $70 an ounce.

The reasons for such positive views on the outlook for precious metals prices have been mooted here over the last few days.

Mike Frawley, global head of metals at Newedge, believes that while European and US leaders struggle to come to terms with their respective debt problems, gold will benefit as bullion investors continue to seek safety for their funds. He reiterates the excellence of gold as a hedge in such troubled economic times, and says that strong demand from Asia, along with an improving economic trend in the West, will reinforce demand for silver and gold.

New York based Newedge was the biggest futures-commission merchant by a measure of customer assets in May.

Meanwhile, in Asia, Reliance Capital Asset Management, which runs India’s second largest fund backed by gold, last week said it expects demand for the metal will carry on climbing as higher income spurs buying.

Finally, according to the World Gold Council, demand from China, which increased 32% through 2010, may double again in the next ten years.

The Future For The Hong Kong Mercantile Exchange Is Silver

The Hong Kong Metal Exchange (HMEX), today started trading in a dollar denominated silver futures contract. The contract will be in lots of 1,000 troy ounces, and be delivered in Hong Kong.

HMEX said on Monday that it hopes to tap into the growing demand for precious metals, and silver in particular, seen from China. Whilst demand for silver rose 17% globally between 2008 and 2010, the figure was 67% fin in China for the corresponding period.

In a statement released by the exchange, HMEX President Albert Helmig said, “The new contract will enable buyers and sellers in China to trade effectively with their counterparts across the world, while at the same time, allowing investors to gain exposure to silver price movements and broaden their investment portfolio.”

The move follows the launch of a dollar-denominated gold futures contract in May.

ANA Exhibit Stolen

The American Numismatic Association is calling for help in recovering six coins stolen from the St Louis Museum of Transport on or around June 11 2011. The combined value of the coins is approximately $19,000, and formed part of the ‘Money of the US Civil War’ travelling exhibit that had been scheduled for display at the museum from June 13 to June 30.

The stolen coins are:

1849 silver dollar (VF30), approximate value $425
1861 quarter eagle (AU55), approximate value $400
1857 three dollar gold piece (copy), $244 bullion value
1862 half eagle (MS60), approximate value $15,000
1847 O eagle (VF30), approximate value $925
1861 double eagle (EF40), approximate value $1,850

The ANA is appealing for assistance in recovering the coins, and anyone with information is asked to call (001) 719-482-9814. This is the first theft from the travelling exhibit program, which includes 10 small exhibits rented to member clubs, museums, libraries, and schools.

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