Source :The Gold Report
Roger Wiegand, editor of Trader Tracks, says cycles will bring gold and silver higher in the first half of 2012: gold up to $2,050/oz and silver up to $44/oz or even $50/oz. He sees plenty of opportunities for volatility given the political and economic situation in the U.S. and the EU. In this exclusive interview, Wiegand reveals names of mining companies poised to profit.
The Gold Report: Roger, you attributed the recent uptick in the gold price in part to large funds bidding up the price. But these funds have also shown their willingness to sell their gold positions to cover their short positions. Can gold investors look forward to more volatility this year?
Roger Wiegand: Gold is coming back very strongly right now. People in India, China, Japan and Canada are buying lots of physical gold. In addition, some central banks that were selling gold are now buyers.
We anticipate two more rallies between now and the end of April. On the six-week rallies, we should go up to $1,807/ounce (oz), then pull back, then go up to $1,923/oz, then pull back, and go on up to $2,050/oz by June.
In the intermediate, which would be three months, we are looking at a couple more cycles for both gold and silver. By the end, we expect gold will be at $1,923/oz. If we are fortunate, we will go all the way to $2,050/oz. And a newsworthy event could drive the investment posture higher.
We are pretty loaded-up on gold and silver, with the bias toward gold. The silver market got a good whack on the head when it went from $49/oz to $26/oz. When a market gets hit that hard, it usually takes six to eight months to come back. This morning, silver was $34.45/oz, with a lot of congestion between $30.48/oz and $34.48/oz. When silver can get past $34.48/oz, it should be a quick move to $36/oz, then $38/oz. My low-side minimum forecast for silver in the first half of 2012 is $38.85/oz. We have a pretty good chance of getting up to $41.44/oz.
If things really begin to get quite volatile this year, I think you could break $50/oz. Our next higher number for silver is $59.85/oz. Some of our smart analyst friends who are a little bolder, have numbers in the $60s and one is even above $70/oz.
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