Gold News from Morgan Gold

By James O'Dell

January 27, 2012, Los Angeles – The price of Gold extended its rally on Thursday, rising 0.54 percent or $9.30 to close at $1,719.10 an ounce, as Gold regained some of its appeal as an inflation hedge when the FOMC confirmed Wednesday that interest rates will remain low, at least through 2014. The price of Silver rose 0.63 percent or $0.21 to close at $33.41 an ounce while the Gold/Silver ratio, the number of ounces of Silver it takes to buy one ounce of Gold, edged down to 51.45 as Silver outperformed Gold.

Precious metals are expected to gain 20 percent by the end of the second quarter of 2012, break $2,000 an ounce by the third quarter, and end the year 21 percent higher, said Barclays Capital on Thursday. Barclays is also calling for the easing of correlations between commodities and other asset classes this year. “Last year saw a pick-up in the correlations on the back of macro concerns and heightened volatility leading to a number of sell-off episodes across different markets,” said Barclays.

Meanwhile, the World Gold Council (WGC) sees China's demand for Gold bullion continuing to rise with no signs of it abating any time soon. "Gold is traditionally bought as a gift during the Chinese New Year and 2012 looks set to be a strong year for demand with Gold imports hitting a record amount in November 2011, but we see this as part of a longer-term trend,” says Albert Cheng, of the WGC. “Near-term inflationary expectations and rising income levels are likely to support the investment case for Gold as an asset class, especially given that Chinese consumers are high savers and are looking to Gold to protect their wealth,” said Cheng. 

In the eurozone, Greece and its creditors are still trying to reach an accord that would reduce its debt burden from 160 percent of gross domestic product, to 120 percent by 2020. The European Union's Olli Rehn says authorities are “very close” to finalizing an agreement on the Greek debt swap before the end of this month. “We’re just about to close a deal on private sector involvement between the Greek government and the private-sector community. Preferably, still in January rather than February,” said Rehn on Thursday. Don't leave your assets unprotected during these times of economic and geopolitical uncertainty, invest in physical Gold and Silver bullion and protect your wealth in 2012.

Widely recognized Gold and Silver bullion coins and bars can be bought and sold quite readily at Morgan Gold and they can be easily stored in a safe-deposit box if needed. Did you know you can add physical Gold to your IRA?  Hear Edmund C. Moy, former director of the U.S. Mint, now representing Morgan Gold, speak on Gold and your retirement. Call 1.800.585.1773 and let our team at Morgan Gold help you diversify your portfolio today. Ask about our new Self Directed IRA. 

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