bofa merrill 4cast $2000-2500/oz goldprice2012

Hey Fellas

Due to Europe's slow down, we are set for stimulus measures by the Chinese, both Fiscal and Monetary, the US Federal Reserve has just pushed out three voting members who have voted against a QEIII, their term ends on December 31st 2011. They will be replaced with three pro Quantative Easing economists.

This gives the impression that Bernanke is set to begin QEIII, most likely from late February 2012.

Bank Of England announced officially on Wednesday, in their Monetary Policy Statement that they will start quantitative easing in February 2012 and now Japan has stated it will do the same.

All this money printing has in the past and is expected in the future to push up the price of gold.

BofA Merrill are expecting the price of gold to hit $2000-$2500/Oz in 2012.

This will allow small cap gold producers like IndoChine to take advantage of a high gold price as they announce drilling results, their 2nd Gold Resource Upgrade in June 2012 PFS and DFS.

Cheers Nectar


Quantitative easing next year will send gold to $2,000, BofA Merrill Lynch analysts say

December 19, 2011
The European Central Bank and the Federal Reserve have no choice but to buy bonds, they predict

Economically sensitive commodities such as energy and copper may fall by less in 2012 than the consensus view as large-scale monetary easing and tight inventories lend support, the Bank of America Merrill Lynch said. "Quantitative easing will lend a strong hand next year," said Sabine Schels, head of fundamental commodity research, speaking at the bank's year-ahead briefing in London. "We see cyclical commodity prices falling only modestly." In an outline of the bank's central scenario for 2012, Europe will go into a modest recession and global GDP growth will be around 3.5 percent. The sluggishness of Western economies will prompt large-scale quantitative easing from the U.S. Federal Reserve and the European Central Bank by next summer, Schels said, helping gold rise to $2,000-$2,500 an ounce. Read more.

In a separate CNBC interview, the bank's head of global commodity research, Francisco Blanch, echoed Schels' forecast: "You're going to have the ECB doing quantitative easing some time in the first half of next year, possibly as soon as the first quarter. And that's going to start to support gold prices. And possibly in the first half of the year in 2012 you will have the Fed coming in and buying more bonds, both Treasuries but also possibly mortgage bonds, and if that happens, that's going to be a very constructive environment for gold. ... You will see quantitative easing, first by the EBC, then by the Fed, and that's what gets you to $2,000 an ounce sometime by next year. It's still a good environment for gold."



http://www.blanchardonline.com/investing-news-blog/econ.php?article=3840