What Will Happen To Gold Prices

What Will Happen To Gold Prices in 2012

Gold prices hit six-month lows in December 2011 when they came under pressure from investors and banks seeking cash and weak physical demand from China. Since then they have steadily recovered but hovered below the 200-day moving average of $1,634. However yesterday (10/01/2012) gold finally broke this barrier which suggests gold may now gather some momentum and begin rising more steadily.

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Interesting to many purchasing Gold Sovereign coins, the Sovereign coin may very well be one of the most famous gold bullion coins to date. Though there were many different issues of the Gold Sovereign, many who are purchasing them today are purchasing the modern edition of the British Sovereign coin, which was first issued in 1817, though the ancestor of the British Gold Sovereign was first minted in 1489, during the reign of King Henry VII. Since then, over one billion Sovereigns have been minted and issued, and the modern ones have been minted in many different locations from Australia and India to China and South Africa, and many investors over the years have been keen on purchasing Sovereigns to add a regal air to their gold investments.

According to the annual survey of industry predictions by the London Bullion Market Association (LBMA), 23 of the largest bullion banks have predicted that gold prices will surpass the high of $1,920 touched in 2011 and may well exceed $2,000 in 2012.
Negative real interest rates and gold purchasing from central banks will continue to support the appeal of buying gold. The amount of physical gold available is shrinking, thanks to demand from emerging economies and accumulation by central banks. As a result increased demand from investors will likely lead to a long-term trend of higher gold prices, causing a rising average over the next few years.


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Purchasing Sovereign coins can be an excellent way to expand your investment portfolio, and with the many benefits of the yellow metal on the market today, it is hard to find excuses not to purchase stores of tangible, solid gold value. The gold content is what makes purchasing Sovereigns so valuable, and in many ways, the high quality precious metal used to create the Sovereign coin is unique too.


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