Outlook for precious metals remains bullish, says Emirates NBD expert

Primarily as a consequence of the ongoing Eurozone crisis, the outlook for the precious metals market remains extremely bullish, according to the Head of Precious Metals at Emirates NBD, a leading bank in the region. 

Addressing the Annual General Assembly of the Dubai Gold & Jewellery Group (DGJG), Gerhard Schubert told the audience of industry decision-makers that there are a range of compelling reasons to believe that the future price outlook for precious metals remains positive. 

Highlighting the weakness of the euro against the dollar and the serious sovereign debt issues across much of Europe, which will further support the precious metals market, Schubert said that there are now clear signs of fatigue among the electorate in France and Germany, the two largest Eurozone nations, to support the euro “endlessly and at all costs.”  

“The new Finnish government was elected on a clear platform of ‘no more bailouts,’ which will make it increasingly difficult for Europe to offer support for distressed nations such as Spain. Against such an uncertain backdrop, the appeal of safe-haven commodities like gold and silver is naturally even greater,” said Schubert. 

“At the same time, consider that the Mexican Central Bank purchased some 93 tonnes of gold in February and May of this year, increasing their reserves of the precious metal 13-fold. Those purchases were made at or near all-time high market prices, which is another very bullish sign, especially considering how closely the Mexican economy is linked to that of its neighbor, the United States. 

“When it comes to precious metals, all of these international indicators are pointing in the same direction – and that direction is upwards,” concluded Schubert. 

Emirates NBD served as a sponsor of the Annual General Assembly of the DGJG, which was held on May 28, 2011, in Dubai. The DGJG is a trade body with over 700 members aimed to promoting the emirate’s jewellery industry, both locally and internationally, through its various activities.