Gold to top $1,405 by next year, finds poll of major bullion conference - Wealth Managers

European central banks vow not to sell their bullion reserves

Gold could gain 8.8% and hit $1,405 in about a year, according to the average response in a survey of attendees at the London Bullion Market Association's conference in Rome.
Silver, platinum, and palladium will also rise by the time of the LBMA's gathering in Lima in November 2014, the survey showed. Seventeen percent said gold would be the best-performing precious metal next year; 16% said silver; 33% said platinum; and 34% said palladium.

The survey also predicted: Silver will climb 20% to $25 by the next annual meeting; platinum will rise 22% to $1,675; and palladium will gain 17% to $837.

"The monetary and investment argument for gold is negative, but the physical side is generally positive," HSBC analystJames Steel told Bloomberg. "Continued high levels of Chinese demand will be supportive. Expectations for Fed tapering are largely digested. Pressures will be if tapering is faster and more severe than expected."

Strong demand for gold jewelry and bars has set "a higher floor for the price," Philip Klapwijk of Precious Metals Insight Ltd. told The Wall Street Journal. 
In other gold news:
Central banks stick with gold: Keeping gold reserves is a key support to central banks' independence, Banca d'Italiadirector general Salvatore Rossi told the LBMA on Monday. "Not only does it have the vital characteristic of allowing diversification, in particular when financial markets are highly integrated, in addition it is unique among assets in that it is not issued by any government or central bank, so its value cannot be influenced by political decisions or by the solvency of any institution," he said. "These features, coupled with historic ... and psychological reasons, stand in favour of gold's importance as a component of central bank reserves. Gold underpins the independence of central banks in their ability to (act) as the ultimate bearer of domestic financial stability."

Other European central banks including the Bank of Franceand Germany's Bundesbank joined Italy in saying they will not sell their gold reserves, as they can provide a level of confidence, an element of diversification and can absorb some volatility from the central bank's balance sheet.
Chinese demand to keep pace with GDP: Consumer gold demand in China, last year's second-biggest user after India, may increase by at least the same pace as the country's economic growth, according to the World Gold Council. Economic expansion may slow to 7.4% next year and 7.2% in 2015, from 7.6% this year, according to economist estimates compiled by Bloomberg. Chinese gold demand growth may at least match those increases and could rise further as a rising population has more disposable income, said the Albert Cheng, Far East managing director at the council. "The number of cities and rising population are sources of future gold jewelry consumption in China," Cheng said. "There's a rising middle class. There are not many alternative investments. Gold is a good alternative to consider for protecting wealth."
 UK gold retailer expands to Singapore: Baird & Co., a U.K. precious-metals dealer, has opened an office in Singapore as physical demand for gold rises in Asia. "There's a switch of physical demand to Asia," said director Tony Dobra. "We're seeing all Asian countries with good demand. Obviously China is a major market."
India's gold imports to rise sharply: India's gold imports in October could rise sharply to 30 tonnes under new governments rules, but still half of the usual monthly average, as exporters await supplies to process pending orders. "We are starving for supplies," said Pankaj Kumar Parekh of theGems and Jewellery Export Promotion Council. India may import a total of 30 tonnes in October, half of the normal average, out of which 6 tonnes might go for exporters and 24 tonnes for the domestic market.

More information can be found online at http://www.goldbullionadvisors.com