The gold price has been rising for the past 12 years, the longest period of appreciation in the last 90 years, and, according to analysts, it will continue to climb in 2013 to almost $2,000 per ounce, as big investors from George Soros to John Paulson, amassing record holdings.
International prices of gold will increase in every quarter of next year and will reach, in the last three months of 2013, around $1,925 per ounce (about $62 per gram), according to analysts contacted by Bloomberg.
Paulson & Co. Fund., Controlled by billionaire John Paulson, accumulated an exposure of $3.62 billion in gold, while Soros Fund Management LLC increased its gold holdings in the quarter by 49%, according to data reported to the Securities and Exchange Commission, the capital markets regulatory commission in the U.S..
Major central banks around the world, including the U.S. Federal Reserve, European Central Bank and People’s Bank of China, promise new measures to stimulate the economy, giving investors insight concerns about inflation and devaluation of currencies. This year investors bought 247 tons of gold on stock exchanges, a volume that exceeds the annual production of the U.S.
In Washington, President Barack Obama and congressional leaders try to reach a compromise on tax policy and budget issues that, if remain unresolved until the beginning of next year, could trigger a new recession.
“We see gold as a shelter from stupid politicians. During this time it is good to make sure you secure some portfolio protection by holding material assets, such as gold,” comments Michael Mullaney, director of investments at Fiduciary Trust, Boston, with assets of $9.5 billion. The gold price has increased this year by 11% to $1,733.1 an ounce, after reaching a historic high in September 2011 of $1,921.15 per ounce.
Standard & Poor’s GSCI index, which measures prices of 24 commodities on international exchanges rose by only 0.8% in 2012, while global stock index shares measured by MSCI All-Country World rose 8.1%.
Private investors holdings in gold reached on 16 November a historical record of 2603.7 tons, with an estimated value of $144.3 billion. Volume exceeds the national reserves of all countries, except the United States and Germany.
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