Types of Gold Coins: Analyst Projections for 2011

On October 11, 2011, the market closed with the spot gold price at $1,670.80/oz. Most experts agree that the year 2011 has seen more volatility in gold prices than the last couple of years combined. Analyst Lorimer Wilson of Munknee.com conducted a survey of gold price projections amongst 155 analysts. Subsequently, 101 out of those analysts seem to suggest that gold will eventually reach a parabolic peak price of at least $2,500 per oz. Investment experts have often touted gold as a safe haven investment. Coin News reported that most experts agree that it is a good idea to commit 5 to 10% of your investment portfolio to gold. There are various ways of investing in gold by trading gold mutual funds, gold ETFs, bullion bars and different types of gold coins. But one needs expert advice and guidance to learn the tricks and techniques of the gold market in order to garner profits.

Four Analysts who Project Gold Prices to exceed $2,500/oz. in 2011

An intricate understanding of the fluctuations of the gold market is imperative before you start investing your life savings in it. Investment experts carefully study, track and analyze the markets to predict and project future price moves and guide novice and expert investors.

Colin Fenton: JP Morgan’s Colin Fenton predicts that gold prices will touch the $2,500/oz. mark before year end. An article on Seekingalpha.com quoted him as explaining, “Gold and sugar have potential to run a lot higher. It has been clear for weeks that the prompt gold price has been building in a rising probability of a re-flaring of the financial crisis, gaining by 9.7% since June 30th as the MSCI World Equity index dropped by 10.1%. The correlation in daily price changes between these two assets has dropped to -0.09 from +0.29 over the prior year. Before the downgrade, our view was that cash gold could average $1,800 per oz by year end. This view will likely now prove to be too conservative: spot gold could drive to $2,500 per oz or higher, albeit on very high volatility.”

Taran Marwah: Eminent analyst in Equities, Gold and Crude Oil, Taran Marwah states that, “By December 2011, gold will be at US $ $3,000.00 per oz. and I still stick to my stance that physical gold is the best and safest investment from date till June 2013.” He has based his predictions on an extensive technical analysis of gold prices, December 2010 onwards.

Patrick Kerr: An analyst at Commodity Trade Alert, Patrick Kerr is of the opinion that gold prices will reach somewhere between $5,000 to $10,000 before the end of the year. The reasons he states range from reflation of economies, an increase in Chinese gold reserves, scarcity of gold during high demand and repatriation to central banks, major insurance companies, sovereign wealth funds and major fund managers buying gold.

Bob Kirtley: Expert analyst and full time investor Bob Kirtley estimated that gold prices will reach $10,000 / oz. based on various reasons and an intimate study of current trends. The reasons he states are many and include the lack of previous investments in gold exploration, no new large discoveries of gold deposits, geopolitical uncertainties, web trading and a mass of new entrants in a limited supply gold market.

Other findings of the study included analysts who concurred reaching the $2,500 per oz. mark and beyond in 2012 up till 2015. But all 101 agreed that the gold prices are set to skyrocket. Every investor however needs to be wary of the volatility of the market and gain as much knowledge as possible about the gold price fluctuations to understand how to trade.