The Analysts Revised upwards their Forecasts for the price of Gold

The six-monthly survey of financial analysts by Reuters shows expectations for increases in gold prices. According to respondents, the debt problems in developed countries and rising demand from emerging gold and silver, and the lax monetary policy of the Federal Reserve are the main causes of optimism for the price of gold.

More than half of respondents expect the gold price remains above $ 1,500 a troy ounce at the end of 2011. In a similar survey in January, financial analysts were less optimistic, with only one in five predicting a price above $ 1,500.

It is not surprising that most analysts will drag the market development of gold, precious metals, or look as monetary metals, are still unknown to many conventional investors. After a generation without paying attention or understand or follow them carefully or have the necessary knowledge and models to value them. Their forecasts, but forecasts are a commentary on the present. The majority of the big financial houses do not even have specialists dedicated to this sector.

A few voices like James Turk, Jim Rogers and Marc Faber, they have matched their predictions and are betting on gold since before the start of their current upward cycle in 1999. Many who have been more prescient about the price of gold and silver meet in August in London for the GATA conference. They explain the journey that still lies ahead for the price of gold and why gold is far from being in a bubble.

In 2010, for the first time in two decades, the world's central banks became net buyers of gold. 2011 is on track to double those flows net of accumulation, with purchases like the Bank of Mexico. According to the World Gold Council (WGC), between 2008 and 2011 the central banks added more than 900 tons of gold reserves.