Most major banks predict that gold will go up in 2013. The Swiss bank UBS says gold will average $1900 per ounce followed by a more bullish prediction by the boys at Morgan Stanley who suggest that gold will average $2000 in 2013 and $2400 in 2014.

UBS and Morgan Stanley are not alone in their audacious forecasts.

Many analysts seem to be in the throes of a rush of gold to the head -type syndrome with very few exceptions. These exceptions are so few that I am not even able to provide one.

One simple reason for the high price of gold is the current economic climate. When all other assets fail, gold is usually the safe haven investors’ flock to. For example when the US credit rating was downgraded from AAA to AA+, many investors expressed their anxieties over currencies and stocks by buying gold.

In other words, fluctuations coupled with market uncertainty and nervousness of the investors means that the price of gold will rise as projected. Upheaval in the Middle East (Oil), Eurozone woes (EUR) and fear of looming bubbles (stocks) have led many to conclude that the only safe and steady asset is gold.