Central Banks Aggressively Buying Gold !
- Do not be taken in by the latest smash down in the prices of gold/silver. The bullion banksters are making a last gasp effort to get out of all their short positions as they know what is coming. Gold and silver will rocket much higher when the global currency crisis starts. The world is returning to gold. It is rapidly replacing the USD in international trade settlement. Central banks are dumping their USD for physical gold.
Central Banks Aggressively Buying Gold, Commodity Report by Top Financial Newsletter Profit Confidential !
In March 2012 alone, 57.9 tons of gold bullion were purchased by world central banks, according to a report by Michael Lombardi, lead contributor to Profit Confidential, and he believes more buying should be expected on any pullbacks.
“To give some perspective on this number, in 2011, central banks bought just under 440 tons of gold bullion, a rate of 37 tons a month,” says Lombardi. In the recent Profit Confidential article, Half of World Gold Production Being Bought by Central Banks, Lombardi believes the central banks took advantage of the lower prices in gold bullion to buy significant amounts of the metal.
“Should the current rate of buying by central banks continue at this pace, central banks will purchase a staggering 700 tons of gold bullion in 2012,” says Lombardi.
According to Lombardi, the gold demand from central banks does not include the largest central bank buyer: the People’s Bank of China. He believes that the Chinese are not reporting their gold-buying numbers to the International Monetary Fund. “But we know the Chinese government is accumulating a staggering amount of gold bullion to back their currency, the yuan,” says Lombardi.
Lombardi believes that, if the People’s Bank of China continues to accumulate gold bullion at the rate he estimates, roughly half of the gold bullion supply will be picked up by central banks in 2012.
“With supply steady and central bank buying increasing at a fast rate, gold bullion prices will have to move higher to satisfy other investor demand around the world,” says Lombardi.
Sorry, the comment form is closed at this time.