UBS was the latest investment bank to raise its gold forecast, based on a multitude of factors likely to push the yellow metal to further new all-time highs.
The firm lifted its 2012 average gold estimate to $2,075, a 50.4% increase over its prior target of $1,380 per ounce. In 2013, UBS expects gold to average $1,780 per ounce, 48.3% above its prior estimate of $1,200 per ounce.
In its report to clients, analysts led by Edel Tully wrote that “Our core view is that ongoing global macroeconomic disappointments, the inevitability of further negative turns in the European sovereign debt crisis, and low business, consumer and investor confidence will lead to gold being increasingly used as the line of defence against negative market outcomes. With the pool of competing asset alternatives sparse, ‘new’ money will flow into the gold market over the months ahead and into 2012, which has significant price implications.”
UBS went on to say that “The maintenance of U.S. rates close to zero means that gold is not in competition with assets that offer yield. Economic growth expectations globally are declining, high debt burdens in Europe will continue to hamper growth, and the risk of a U.S. recession is rising. All of these factors are individually positive for gold. Taken together, they are a potentially explosive cocktail.”
West Kirkland Launches Drill Program in Nevada
On September 7, 2011, Barrick announced a new discovery 24 kilometers south east of Pipeline which highlights the continued potential of the region. The target at Bullion is the north-south structures projected from the Pipeline mine and the potential flat Roberts Mountain thrust structures that control gold deposits in the region. Full West Kirkland Mining Press Release.
* The Battle Mountain Trend is one of the most prolific gold trends in North America; recent exploration has been successful in finding high grade gold in addition to the near surface lower grade types of gold deposits found in the 1980s and 1990s.
*West Kirkland Mining can earn a 60% interest in Bullion Mountain through a joint venture with Fronteer Gold (acquired by Newmont Mining) by spending $ 1.8 million over 4 years.
*Earlier this year, West Kirkland appointed Kent Samuelson to the position of Manager, Nevada and Utah; he has over 25 years of exploration and development experience throughout the western United States.