In the past, owning Gold and Silver accounted for a substantial portion of ones global assets. Still currently this valuable asset has never been more under owned. All through decades it was universally recognized as a typical method for wealth preservation including a method of exchange. According to records from the CPM Group put together at Casey Research in 2010 the value of gold on earth is only about 0.6 percent of all personal assets.
Now here is the big picture. With gold in addition to silver accounting for very little of the world wide financial assets, any sharp shift of assets from currencies to gold and silver or bonds to gold silver, within the wink of your eye would trigger gold and silver to go through the roof.
…And to be truthful, it wouldn’t take very much for this ball to roll right into a massive financial meltdown.
At this point the following is the kicker, institutions for example pension and endowment funds now have vehicles pertaining to purchasing gold.
Though corporations such as these were banned from getting or owning actual physical gold silver (coin or bullion), these kinds of funds now utilize a technique called exchange-traded.
Understand, all this is developing with no major public notice. Here is what some major hedge fund administrators have been declaring about gold to their clients:
“Price of gold could reach $2400” John Paulson Hedge Fund Manager Paulson & Co. Sep 2010
“Gold has a time and place, now is that time” Paul Tudor Jones Hedge Fund Manager Tudor Investments Oct 2009
“It’s advisable for everybody to own gold” Jim Rogers Co-Founder of Quantum Fund with George Soros Sep 2010
Go figure…Talk about “getting your hand caught in the cookie jar”.
This gets even better. Governments are buying gold by the truck load, after years of being net sellers.
“If history has taught us anything…it is, history always repeats itself”.
It’s not any secret that as the distrust evolves in regards to the stability of the world reserve currencies, additionally waning global confidence in the developed nations desires to pay the balance of their massive deficits, one ought to ask themselves this question:
If central banks all around the earth are purchasing gold then it has to be for a reason?
Then again, before you marinate on the above…Take a glance exactly what the mass media has revealed right before our eyes. Here are a few excerpts from your media about central bank gold purchases:
“Central banks turned to buyers from sellers of gold for the first time in 20 years in 2009, driven by Chinese stockpiling and worries over global currencies” Metals Research and Consultant CPM Group April 27, 2010
“Central Banks join gold rush and are net buyers of gold” CNNMoney.com June 2010
“China Revealed it had secretly raised it’s gold reserves by 30 billion USD since 2003” Financial Post April 24 2009
“India Central Bank buys 200 tonnes of gold from IMF” Bloomberg November 3 2009
Cum-mon folks. Read between the lines.
Needless to say, with gold supply decreasing and demand growing, nations around the world such as China really encourage its 1.4 billion citizens to acquire gold and silver with 5 percent of their savings. Just last year, Chinese families between July and October absorbed 16 percent of global gold demand. Look at this startling fact:
Chinese individuals purchased almost fifty percent as much gold since the global financial meltdown began in mid-2007 as all investors living in the West!
WOW…Talk about not putting all your eggs in one basket.
The simple truth of the matter is this. The data points to escalating demand by institutional investors, shrewd money, central banks, and emerging markets. Its clear with the huge demand comes high cost when the assumption is made that supply is kept constant.
But, before you decide to go putting the cart before the horse…You got to know that the availabilit of gold is not constant. The truth is it really is decreasing.
Reported by CPM Group data produced by Casey Research in 2010, around the world gold production is actually declining. Also, the World Gold Council reports that global gold mining production has in fact dropped since 2000, despite the substantial run-up in gold prices.
In conclusion, let me get right to the point. With gold supply decreasing, demand increasing compounded with rising world wide worries about the american nations capability to pay off their debts and I hate to say this, but…an increasing distrust in the current world reserve currency in the US dollar, bring great upward pressure to the price of gold.
Is There A Glimmer of hope?
I will make no bones about it, with the general public; the mass media has pulled the wool over there eyes and have simply no idea about these developments.
Then again for the rest of us who would not buy into selling their gold for cash…There is a light at the end of the tunnel.
Better safe than sorry. And that is the key reason why we are suggesting that people buy gold now!