Salient to Investors:

Argentines are buying more gold than ever to preserve the value of their savings as economists forecast the peso will depreciate 12.9 percent through year-end and the government bans most dollar purchases.

Sebastian Porcel at Global Agro said investors see gold futures as a good option to dollarize their portfolios.

Goldman Sachs last month cut its 3-month target to $1,615, saying the cycle for gold prices has turned as the US economic recovery gathers momentum and investments decrease. Soros reduced his gold stake by 55 percent in Q4.

Gold futures traded in New York have fallen 11 percent in the past six months.

Claudio Burelli at Puente Hermanos Sociedad de Bolsa said the difference between the prices to buy and sell gold is greater than the gap when trading futures, so investors are more at risk of losing money when they need to sell. Burelli said gold sold by Banco Ciudad is not recognized internationally, so more difficult to determine its value.

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