CPM Gold Outlook 2018
EDIT- Some highlights from a very well done, insightful report as presented at this year's Denver Gold Group conference. CPM addresses current events, misconceptions, and trends. All angles are covered without bombast or hyperbole.
Of note to us was the growing de-emphasis on Gold as "safe haven" asset and the growing perspective that it is becoming a wealth creator via active trading. We have said this several times and are happy to see it from CPM. Enjoy.- Soren K.
The State of Gold Supply and Demand in 2018
- Gold price expectations in 2018 and beyond.
- From Fear to Greed: The changing character of gold investment demand.
- Gold’s relationship with interest rates and the dollar
- The Enormous Asymmetry Of Gold Information
A Few Of The Things We All Know About Gold That Simply Are Not True - In Fact:
- Gold mining is profitable
- Gold reserves are at record levels
- Crypto-currencies are not the big distraction for investors from gold
- Rising interest rates are not a major headwind for gold prices
Gold Price Expectations
Gold prices averaged $1,259.47 in 2017, up 0.7% from 2016’s average price. The price rose 14% from the end of 2016 to the end of 2017, however.
Near-term outlook
CPM projects gold prices will rise about 2.3% to $1,288 on average in 2018, rising modestly during the year.
Further modest gains are expected in 2019 with price gains accelerating.
Long-term outlook
Longer term, CPM expects gold prices to rise sharply, probably to record annual average prices, in the period 2021 – 2024.
Prices might reach $2,185 on a nominal average annual basis, $1,850 in 2016 dollar terms.
Why Gold Prices Are Likely To Rise Longer Term
Gold prices are projected to rise in the coming 5 – 10 years bec
ause of a combination of:
1. Economic, financial, and political factors stimulating increa
sed investment demand.
2. Continued strong investment demand trends.
3. Continued central bank buying.
4. Declining mine production after 2019.
Full PDF Here: CPM-DGG-Gold-Outlook-2018-2018-01-16
Read more by Soren K.Group
