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Central Banks Racing to Gold Following Recent Fed Action

208 views  2012-10-18 05:12
Michael Lombardi, financial expert and lead contributor to Profit Confidential, reports that gold bullion prices have been hovering a little below $1,800 an ounce. Lombardi states that, with the recent increase in money printing by the Federal Reserve, gold will move higher as central banks race to purchase gold bullion as a store of value against an uncertain global economy.

In the article “In the Race of World Central Banks to Print Money, There’s Only One Real Winner,” Lombardi highlights that gold bullion is currently the only form of currency that is stable, can’t be produced out of thin air, is in limited availability, and has a good store of value.

“The U.S. dollar, which was considered a foreign reserve currency by about 60% to 65% of world central banks, is quickly becoming a liability for foreign central banks,” says Lombardi.

The Profit Confidential lead contributor states that central banks are on a buying spree for gold bullion.

 

“Central banks do not make an announcement before they go out in the markets to buy gold bullion,” notes Lombardi. “It’s because they want to buy without increasing the price of gold bullion. If one follows the tracks of central banks’ purchase pattern for gold bullion, one can be certain that they are on a buying spree.”

The Profit Confidential lead contributor also points out that the chances that China will buy more gold bullion are very high, since it has the world’s biggest foreign reserve of U.S. dollars.

“Central banks are running towards the yellow metal and will continue to chase it until there is stability in the current global economy,” Lombardi concludes.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

 

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