THE SECOND half of 2012 is set to see a record level of Gold Investment, a leading precious metals consultancy said this week.
Thomson Reuters GFMS, which published its 'Gold Survey 2012 – Update 1' on Tuesday, forecasts that this will push Gold Prices back above $1800 for the first time since last November.
"We could see a drive to $1850-plus over the next couple of months," said Philip Klapwijk, global head of metals analytics at GFMS.
Klapwijk added that much of the drive for investing in gold is based upon the potential for further monetary stimulus measures from the Federal Reserve, including a possible third round of quantitative easing.
"QE3 has become talismanic now," he said.
"[But even] if one imagines that US monetary policy stays on hold, or there is just a change in rhetoric, that might itself be sufficient for investors to still come into the market."
GFMS forecasts that Gold Investment demand – which includes Gold Coins, bars and ETFS – will reach 973 tonnes in the second half of 2012. This compares to an estimated 960 tonnes over the same period last year, according to the latest World Gold Council figures.
In the six months to June, Gold Investment demand was an estimated 709.4 tonnes. GFMS's forecast suggests therefore that total investment demand to Buy Gold in 2012 will be just under 1700 tonnes, below the 2000 tonnes the consultancy predicted back in April.
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