Gold can be a star performer for investors in 2012, just as falling imports of the metal into India undermine the trade in Dubai, a leading precious metals expert said. Jeffrey Rhodes, Global Head of Precious Metals and CEO, INTL Commodities, Dubai Multi Commodities Centre (DMCC), predicts that gold prices will threaten to reach $2,000 per ounce this year, but ultimately fall just short of the mark. Rhodes, who has been involved in the international precious metals business since 1978, took part in a panel debate Friday on the future of the US Dollar, BRIC (Brazil, Russia, India, China), and commodities, at the 51st ACI Financial Markets World Congress in Dubai. The congress ended Saturday. He sees present weakness across the precious metals sector, and a strong track record in performances over the last ten years, as factors combining to present good buying opportunities. Analyzing the potential for investment in precious metals this year, Rhodes said that while gold has gained by 5.43 percent from the end of 2011 to its current price of around $1650, this is well off the high of $1790 posted at the end of February. "I remain cautiously bullish for 2012 as a whole and see the current weakness across the precious metals sector as a buying opportunity," he said. "In a world devoid of yield, money managers need to invest in asset classes that will give capital gains, and moreover they need to point to track record when explaining their investment strategies to their investors.
