There is a huge raising Demand For Gold:
I’ve learned a great deal from personal experience and from my ongoing research. History shows that when the rising cycle for financial assets (stocks, mutual funds and bonds) ends, investors often turn their attention to tangible assets like gold and silver. That’s exactly what’s happening now, both here and abroad.
Demand for gold has risen sharply in the United States during the last few years. Before and after the stock market began falling, some investors diversified their holdings with undervalued gold and silver assets. With the stock market’s recent gyrations, a growing number of investors have already benefited from their diversification into gold. Most gold investors agree that it’s still a good time to diversify into gold and silver. The upside potential is strong.
Looking overseas, China represents two major new sources of demand for gold. The government is buying an extraordinary amount of gold to expand its official holdings. There is some talk that they envision a day when their money is backed by gold and becomes a major international currency.
The Chinese government is now allowing its private citizens to legally own gold for the first time since 1949. It is unheard of for a communist dictatorship to encourage and facilitate gold ownership because gold buys freedom! The removal of their 50+ year-old gold-owning prohibition will release the pent-up demand of 1.3 billion people with a lengthy history of owning gold.
As China’s economy expands, the amount of gold purchased by their government and their people could send the gold market sharply higher. And there are other international sources of growing demand worth mentioning at this time…
Demand from the Middle East has always been powerful. Now the problems in and around the Holy Land, coupled with America’s war on terrorism have stimulated aggressive demand. The region’s long-held distrust of paper money has been powerfully reinforced as the Turkish currency crumbled.
Demand for gold has also expanded from an unusual source: gold mining companies. Many of them have been covering their forward sales by purchasing gold in the open markets. The process that sent gold down in the 1990’s is being reversed and the result is higher demand, which should lead to higher prices.
Those are five significant reasons that demand for gold is rising. Now let me say two important words about supplies of the yellow metal: they’re falling. Supplies of newly-mined gold are actually shrinking. During the past 20 years there have been very few new mines opened due to low gold prices. And it takes a long time and millions of dollars to bring a new gold discovery to production.
When the price of gold is low – as it has been during the last two decades – the entire process grinds to a halt. In fact, worldwide gold production is falling because mines with high costs stop producing. Numerous gold mines around the world have been closed and it takes quite an effort to revive production.
Get Started Today!!
Call us at 1-800-346-2880
I’ve learned a great deal from personal experience and from my ongoing research. History shows that when the rising cycle for financial assets (stocks, mutual funds and bonds) ends, investors often turn their attention to tangible assets like gold and silver. That’s exactly what’s happening now, both here and abroad.
Demand for gold has risen sharply in the United States during the last few years. Before and after the stock market began falling, some investors diversified their holdings with undervalued gold and silver assets. With the stock market’s recent gyrations, a growing number of investors have already benefited from their diversification into gold. Most gold investors agree that it’s still a good time to diversify into gold and silver. The upside potential is strong.
Looking overseas, China represents two major new sources of demand for gold. The government is buying an extraordinary amount of gold to expand its official holdings. There is some talk that they envision a day when their money is backed by gold and becomes a major international currency.
The Chinese government is now allowing its private citizens to legally own gold for the first time since 1949. It is unheard of for a communist dictatorship to encourage and facilitate gold ownership because gold buys freedom! The removal of their 50+ year-old gold-owning prohibition will release the pent-up demand of 1.3 billion people with a lengthy history of owning gold.
As China’s economy expands, the amount of gold purchased by their government and their people could send the gold market sharply higher. And there are other international sources of growing demand worth mentioning at this time…
Demand from the Middle East has always been powerful. Now the problems in and around the Holy Land, coupled with America’s war on terrorism have stimulated aggressive demand. The region’s long-held distrust of paper money has been powerfully reinforced as the Turkish currency crumbled.
Demand for gold has also expanded from an unusual source: gold mining companies. Many of them have been covering their forward sales by purchasing gold in the open markets. The process that sent gold down in the 1990’s is being reversed and the result is higher demand, which should lead to higher prices.
Those are five significant reasons that demand for gold is rising. Now let me say two important words about supplies of the yellow metal: they’re falling. Supplies of newly-mined gold are actually shrinking. During the past 20 years there have been very few new mines opened due to low gold prices. And it takes a long time and millions of dollars to bring a new gold discovery to production.
When the price of gold is low – as it has been during the last two decades – the entire process grinds to a halt. In fact, worldwide gold production is falling because mines with high costs stop producing. Numerous gold mines around the world have been closed and it takes quite an effort to revive production.
Get Started Today!!
Call us at 1-800-346-2880
