LWHAT OTHERS ARE THINKING
The London Bullion Market Association will publish Forecast 2011 on its website in mid-January. In the meantime, here is summary of what the report says: "A total of 24 contributors have given us their estimates for the high, low and average price for 2011 for gold, silver, platinum and palladium, based on the London fixings, with a brief commentary on the major influences and activity for each metal covered. "In 2011, Forecast contributors predict rises for all precious metals for the second year in a row. Their average gold forecast is US$1,457, a 19.0% increase on the 2010 average price, similar to the forecast of $1,450 made by delegates at the 2010 LBMA Precious Metals Conference in Berlin last September. Analysts predict that the average silver price will be $29.88, a 48.0% rise on the 2010 average price. "The average 2011 Platinum price is forecast to rise 12.6% from the average 2010 price, to $1,813 and palladium shows no sign of slowing down with an average 2011 price prediction of $814.65, a 54.8% increase on last year’s bumper average price." The LBMA said 2010 was a very good year for its forecasters. Their average gold price prediction of $1,199, a 23.4% increase on the 2009 price, was just $26 lower than the actual average price of $1,225. All metals rose as predicted, although silver and palladium exceeded almost everyone’s expectations. Tables summarising the results of Forecast 2011 are available here.
Stephen Ward
The Perth Mint Blog
