Gold's 12-year rally, the longest in at least nine decades, is
poised to continue in 2013 as central bank stimulus spurs investors
from John Paulson to George Soros to accumulate the highest
combined bullion holdings ever, according to a Bloomberg
The metal will rise every quarter next year and average US$1,925
an ounce in the final three months, or 11% more than now, according
to the median of 16 analyst estimates compiled by Bloomberg.
Paulson & Co. has a $3.67 billion bet through the SPDR Gold
), the biggest gold-backed exchange- traded product, and Soros Fund
Management LLC increased its holdings by 49% in the third quarter,
U.S. Securities and Exchange Commission filings show.
Central banks from Europe to China are pledging more steps to
boost growth, raising concern about inflation and currency
devaluation. Investors bought 247.5 metric tons through ETPs this
year, exceeding annual U.S. mine output. While both sides said
talks Nov. 16 between President Barack Obama and Congress over the
so-called fiscal cliff were "constructive," the Congressional
Budget Office has warned the U.S. risks a recession if spending
cuts and tax rises aren't resolved.
"We see gold as a hedge against the follies of politicians,"
said Michael Mullaney, who helps manage $9.5 billion of assets as
chief investment officer at Fiduciary Trust in Boston. "It's a good
time to garner some protection in portfolios by having some real
asset like gold."
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