Top Ten gold mining countries of 2011

China was the biggest gold producer in 2011, a report by the London based metals research company CRU states. Chinese production grew to 380 tonnes in 2011, up 11.4% from 341 tonnes in 2010.

Australia produced 4.6% more gold in 2011 and came second with with 272 tonnes of gold output compared to 260 tonnes produced in 2010.

Total global gold output was pegged at 2789 tonnes, a 5.7% increase from 2010 production of 2638 tonnes

 CRU's Top Ten gold mining countries of 2011

Gold at $2175/oz : Morgan Stanley forecasts

NEW YORK : Morgan Stanley expects gold prices to remain bullish for 2012 but sees risk to oil prices. The bank forecasts gold prices to average $1845/oz in 2012 while oil prices are expected to average $105/barrel

On oil, even though the bank expects prices to average $105/barrel in 2012, current high prices are likely to slow demand and support more production by OPEC causing "bearish inventory trends". In a bear case scenario, oil prices could fall to as low as $85/barrel

On gold, the bank states that “…Recent coordinated actions by six central banks and separate actions by the ECB suggest that non-gold related measures to ease access to USD swaps will be successful, reducing downside pressure on the gold price”

The bank expects gold prices to climb to $2175/oz by 2013 with prices depending on 4 bullish factors - decline in producer hedging, decline of developed market central bank sales, inability of gold mines to increase gold supplies materially and the long term growth in physical investment demand.

Silver : Superb choice for investors

FLORIDA: Silver will be the emergent king for precious metals investing in 2012 as a manufacturing boom will push its price upwards to $150 per ounce by the end of year, predicts Stephen M Smith, Managing Member of Smith McKenna, LLC.

Smith points out that in today's economy it is crucial to diversify investment portfolio, and commodities like silver is a superb choice.

According to Smith, who has over 20 years of experience in precious metal commodities and nobly boasts the lowest spreads in the commodities investing market, emerging dynamics are already spurring silver to experience its best quarter in a year's time.

He says,”The dynamics of Silver clearly dictate that it is undervalued many times over and holds the key to tomorrow’s new technologies.”

Also, he adds,”Without the Japanese tsunami, then a Greek crisis, a U.S. budget fight, and finally - the flooding in Bangkok; the global manufacturing data would have skyrocketed and sent Silver to the prices now enjoyed by less used metals like gold, palladium, and platinum.”

Smith notes that a lot of the hype behind precious metals investing in today’s market rests with gold, but silver should not be ignored and could now emerge the leader of the market. Silver is on par to experience its best quarter in a year’s time, something that is reinforcing that very notion.

Silver has reached a high so far of $33.13 per ounce and a low of $32.95 per ounce