Deutsche Bank Sees Gold At $1600 In 2012

Michael Blumenroth, a precious metal trader at Deutsche Bank, said on CNBC that the price of gold will continue its bullish trend, and it will eventually peak at $1,600 in 2012. He explained that Deutsche Bank's research team was at first bearish on gold, because they thought that this bull market in gold will be over soon, but after the problems in the euro-zone they changed their opinion. Now, Deutsche Bank believes that gold will continue to be a safe heaven. Michael Blumenroth added that central banks are not selling gold in the European markets at the moment. The IMF will probably sell this precious metal, but the IMF would rather sell it to Asian central banks than sell it in the market. Michael Blumenroth doesn't recommend investors have more than 5%-10% of gold in their portfolio. If you are also bullish on gold and you see it as a safe heaven, one way to get exposure to gold is by buying SPDR Gold Trust (ETF) GLD. You can also look at gold miners, or you can try with Market Vectors Gold Miners ETF GDX.