Advisors and Analysts Say Gold is Still Golden

Gold is set to remain a sound investment this year and next as central banks build reserves. Several big banks estimate that the average price will end up above $2,000. The Federal Reserve said that they were going to keep interest rates low for a few years, which should fuel gains in gold.

One analyst says that if you should keep investing in gold because you believe the gold price will go up, but you should probably stop investing in gold if you are buy it as an insurance policy for the rest of the portfolio.

Average silver prices are slightly lower than last year and are not expected to rebound this year or next to the highs that they reached last year. Investors are still slow to invest heavily in silver because of the turbulent price moves last year.

See Steven Maimes, Poll: Gold Rushes for 12th Year of Gains, Record Seen, The Trust Advisor, Jan. 27, 2012.