Ing sees gold price spiking to $3,000 US an ounce in 2012

One thing about John Ing, president of  Toronto-based Maison Placements Canada: the man doesn’t shy away from bold predictions.

When I interviewed him last July, with gold prices in the $1,600 US an ounce range, he figured the yellow metal would hit $2,000 an ounce by year’s end. He was wrong — but not by a lot.

In fact, gold prices spiked to more than $1,920 an ounce by September, making Ing look like a smarty pants, at least for awhile.  But then a sharp correction hit, and gold prices pulled back all the way to the $1,540 range by late December.

The abrupt 20 per cent drop prompted some observers to declare that the 11-year rally in gold prices had finally ended. Not Ing. He stuck to his guns, reiterating his audacious forecast that gold would hit $3,000 in 2012.

Suddenly, that doesn’t sound so crazy after all. With the first month of 2012 now in the history books, gold prices have already rocketed back up to the $1,740 range, for a gain of 13 per cent in just four weeks.

“Gold has reversed course, resuming its uptrend on growing concerns over the lack of confidence in paper assets and the prospect of another round of quantitative easing,” says Ing, in his latest report, issued last week.

“Central banks remain firmly on the path of printing money to pay off public debts and to keep their banking systems solvent. As bankers print ever more currency, they reduce the buying power of money in circulation . . . History shows that inflation always follows monetary expansion,” he says.

“Even with the (late 2011) correction, gold has done better than every other asset, including the dollar, up more than 10 per cent last year, making its 11th consecutive annual gain . . . we expect gold to reach $3,000 an ounce and end up (for a 12th straight year) in 2012. There’s just a lack of compelling investment alternatives.”

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Posted by admin on Feb 1 2012. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry