One in five IFAs think gold will hit $1800/oz by the end of 2012

Research from Legal & General Investments reveals that one in five (19%) IFAs believe the price of gold will hit $1800/oz or more by the end of 2012.  This is a rise of almost 10% by the end of the year, based on the current gold value of $1647/oz.

To further reinforce this confidence in gold, the research shows that a third (32%) of IFAs believe that the price will finish above $1600/oz at the end of the year. On the opposite side of the debate almost a quarter of IFAs are less bullish and think that gold will end the year below $1600/oz. In addition, 15% of IFAs are taking a bearish view on the yellow metal, believing it will end 2012 below $1400/oz.

Tim Gardner, Co-Manager, Legal & General's Multi-Manager fund range said: "We have seen the price of gold increase significantly year-on-year over the past decade such that today it stands at over $1,650/oz. In an era of debasement of paper currencies, the yellow metal remains the ultimate 'hard currency' and should continue to receive support from highly accommodative monetary policy and ongoing demand from central banks looking to diversify their reserves away from the likes of the US Dollar."