CAPITALS: Precious metals continue to be a favorite among investors, according to Peter Cooper, Editor, ArabianMoney, the only independent investment newsletter in the region.
"Silver, and by implication gold, look set to surge into the New Year. Indeed, gold could easily hit Jim Sinclair's 1,650 US dollar prediction, one that the gold guru mooted m ore than eight years ago. This was stated in a press release on Wednesday.
"The current bull market has gold priced at all-time high, presently around $1,430" said Cooper.
Meanwhile, silver is now above $30 an ounce, up 70 percent in 12 months.
"While gold seems to still be the first choice of investors, it is silver's turn to offer higher rates of return."
Cooper suggested that silver will drive the market until mid-January. He first predicted a rise in silver prices earlier this year when he observed that silver is repeating the patterns seen in 1980 when it reached $50, an all-time high that has not been repeated since then.
"Silver has always been highly speculative as an investment class but history has a habit of repeating itself, if only because investors read history and act on it.
"The best guide to the silver price is to track gold. If the forecast from Sinclair for $1,650 gold by mid-January is correct then silver ought to peak around the same time."
Looking ahead, Cooper reckons that the financial markets will fall back until the summer, and then recover with local bourses repeating this year's Ramadan rally.
He suggested that precious metals, oil or a quality fund of the same are long-term sound investments after the correction early next year.
"Low-risk investment, diversification and caution are the watchword but at the right moments some speculation could pay off. Fortunes are made - and lost in such turmoil," concluded Cooper.
"Silver, and by implication gold, look set to surge into the New Year. Indeed, gold could easily hit Jim Sinclair's 1,650 US dollar prediction, one that the gold guru mooted m ore than eight years ago. This was stated in a press release on Wednesday.
"The current bull market has gold priced at all-time high, presently around $1,430" said Cooper.
Meanwhile, silver is now above $30 an ounce, up 70 percent in 12 months.
"While gold seems to still be the first choice of investors, it is silver's turn to offer higher rates of return."
Cooper suggested that silver will drive the market until mid-January. He first predicted a rise in silver prices earlier this year when he observed that silver is repeating the patterns seen in 1980 when it reached $50, an all-time high that has not been repeated since then.
"Silver has always been highly speculative as an investment class but history has a habit of repeating itself, if only because investors read history and act on it.
"The best guide to the silver price is to track gold. If the forecast from Sinclair for $1,650 gold by mid-January is correct then silver ought to peak around the same time."
Looking ahead, Cooper reckons that the financial markets will fall back until the summer, and then recover with local bourses repeating this year's Ramadan rally.
He suggested that precious metals, oil or a quality fund of the same are long-term sound investments after the correction early next year.
"Low-risk investment, diversification and caution are the watchword but at the right moments some speculation could pay off. Fortunes are made - and lost in such turmoil," concluded Cooper.
Source: http://alwatandaily.kuwait.tt
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