The concentration in the gold market takes months in a row. Experts predicted the collapse of this bubble in the spring of this year. And gold continues to rise in price. And according to analysts’ forecasts, growth will continue, at least until the end of the year. The bubble could burst if Europe solves its problems and they start talking seriously about rate hikes in the United States. Experts talked about this during a conference organized by Finam.
The price of gold for the first time in history exceeded $ 1600 per ounce. This growth was caused by the almost simultaneous worsening of the debt problems of major developed countries. This was followed by a correction following encouraging news from abroad and the eurozone. However, experts are confident that until global debt problems are resolved, gold will rise in price. “Debt problems in Europe and the United States threaten economic growth and introduce significant uncertainty in the markets. Under these conditions, the demand for reliability is growing. At the same time, precious metals have virtually no alternative as a reliable asset, as The US Treasury bonds are also defaulted. Yes and the ways to solve debt problems, in one way or another, are reduced to printing money “on paper”, which leads to its depreciation in relation to gold, “- said Alexander. Kovalev, commodity market analyst at TKB Capital. If the former gold was considered a hedge against the dollar, now Europe’s debt problems play a growing role, agrees his colleague Oleg Dushin, senior analyst at Zerich Capital Management: Greece’s default and tense discussion by lawmakers about the rise of US government debt ceiling. “
Experts believe that the precious metals market will maintain a growing trend at least until the end of this year. “Until the end of 2011, the precious metals markets will remain strong. Perhaps silver will even break historical highs again and break the $ 50 milestone. But at current levels, investing in silver is already being risky and is aimed at “We need $ 1,600 for good reasons. For example, the implementation of the default scenario in the United States or another serious aggravation in Europe,” says Alexander Kovalev.
That is, it is not worth buying gold at current levels, but during correction periods it is possible and necessary. “Buying gold at $ 1,600 an ounce and silver above $ 40 is probably not worth it, but you can play with the growing trend of these assets. In the coming years, for sure. All that’s left is to buy at the right times when speculators return. throw quotas. “, – asks Sergey Kazantsev, analyst at BFA Investment Company.