Central Banks Racing to Gold Following Recent Fed Action217 views 2012-10-18 05:12
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.”
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.
was among the first (back in late 2006) to predict that the U.S. economy would be in a
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market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to
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