El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
GFMS says that investment demand will continue to drive gold higher, and analysts at the firm would not be surprised to see gold break through $1,600 before the end of the year. The findings were published in GFMS’s Gold Survey 2011 that were released today.
“Investors continue to be concerned about the outlook for inflation, with governments in general showing little appetite to tighten monetary policy significantly,” says Philip Klapwijk, chairman at GFMS, in a news release.
“And, with the spotlight shining on the state of government finances, there is every reason to believe that investors will remain focused on the gold market. Furthermore, growing price acceptance by consuemers will help lift jewellery demand, while generating only a muted response from scrap. Together, these will help raise the support level in the gold market and privide a firm platform for investors to taek gole higher. Overall, we would not be surprised, therfore, to see gold break through $1,600 fefore the end of the year.”
The survey notes that gold prices rose 26% per in 2010 driven by investors buying gold bars, coins and gold-backed exchange traded funds. However, 2010 was only the second highest year on record for gold investing. The year before, 2009, was the highest.
Jewellery demand recovered in 2010, getting a lift from China and India and their growing economies.
Michael Allan McCrae wrote this story. You can contact him at [email protected] or @michaelmccrae.
