Central Banks Back Buying Gold with a Vengeance
Monday, November 21st, 2011
By Michael Lombardi, MBA for Profit Confidential
Surprise…surprise…
After years of heavy selling, central banks became net buyers of gold in 2010 for the first time in about 20 years. But that’s not the big news…
The World Gold Council reports that world central banks made their biggest purchases of gold during the third quarter of 2011 in over two decades, with a slew of central bank buyers entering the arena for gold for the first time in years.
If the buying continues, which I believe it will, world central banks could end up making 2011 the biggest year for gold central bank purchases in 40 years.
What’s fueling the purchases of gold by central banks? The answer is simple. The euro has proven to be a catastrophe and the U.S. is continuously failing to get its debt situation under control. With 70% of world central banks having adopted the U.S. dollar as their reserve currency, and given what looks like a continued devaluation of the greenback, foreign central banks are looking for an alternative…and they’ve found it with gold bullion. (Also see my Top Five Reasons Why Gold Prices Will Move Even Higher.)
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Tags: buying gold, gold, gold prices, U.S. dollar
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Michael bought his first stock when he was 17 years old. He quickly saw $2,000 of savings from summer jobs turn into $1,000. Determined not to lose money again on a stock, Michael started researching the market intensely, reading every book he could find on the topic and taking every course he could afford. It didn’t take long for Michael to start making money with stocks, and that led Michael to launch a newsletter on the stock market. Today, Michael only employs the top market analysts and editors. Some of our recommendations have posted gains in excess of 500%! Michael has authored and published over one thousand articles on investment and money management. Along the way to building Lombardi Publishing Corporation, now with over one million customers in 141 countries, Michael became an active investor in real estate, art, precious metals and various businesses. Readers of the daily Profit Confidential e-letter are offered the benefit of the expertise Michael has gained in these sectors. Michael believes in successful stock picking as an important wealth accumulation tool. Married with two children, Michael received his Chartered Financial Planner designation from the Financial Planners Standards Council of Canada and his MBA from the Graduate Business School, Heriot-Watt University, Edinburgh, Scotland.Follow Michael and the latest from Profit Confidential on Twitter



