Now here is the big picture. With gold along with silver accounting for a small amount of of the global financial assets, the sharp shift of assets from currencies to gold and silver or bonds to gold silver, in the wink of an eye would certainly result in gold and silver to go through the roof.
And frankly, it wouldn't take much for this ball to roll into a massive financial meltdown.
Now here is the kicker, corporations for example pension and endowment funds are in possession of vehicles pertaining to purchasing gold.
While institutions such as these were prohibited from buying or owning actual physical gold silver (coin or bullion), these funds now use a method called exchange-traded.
Recognize, all this is occurring with no major public notice. The following is what some major hedge fund professionals have already been saying about gold to their clients:
"Price regarding gold may possibly strike $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 figureTalk about "getting your hand caught in the cookie jar".
It becomes even better. Governments are actually buying gold by the truck load, after years of being net sellers.
"If history has taught us anythingit is, history always repeats itself".
It's absolutely no secret that as the distrust grows concerning the steadiness with the world reserve currencies, as well as waning international confidence in the western nations desires to settle their huge deficits, one should ask themselves this question:
If central banks throughout the earth are acquiring gold then it must be for a reason?
Even so, before you marinate on the aboveTake a peek what the mass media has pointed out right before our eyes. Below are a few excerpts from the 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 in between the lines.
Needless to say, with gold supply decreasing and demand increasing, nations around the world for example China motivate their 1.4 billion citizens to purchase gold and silver with 5 percent of their savings. Just recently, Chinese people between July and October absorbed 16 percent of world wide gold demand. Consider this startling fact:
Chinese people purchased pretty much 1 / 2 as much gold since the global financial meltdown began in mid-2007 as all investors living in the West!
WOWTalk about not putting all your eggs in one basket.
The straightforward fact of the matter is this. The data points to growing demand by institutional investors, intelligent money, central banks, and emerging markets. It is clear with the huge demand comes high price when the presumption is made that supply is kept constant.
But, before you go putting the cart before the horseYou got to know that the supply of gold is not really consistent. In reality it really is decreasing.
According to CPM Group data produced by Casey Research in 2010, worldwide gold output is declining. Similarly, the World Gold Council reports that world gold mining production has essentially declined since 2000, regardless of the big run-up in gold prices.
To conclude, let me get right to the point. With gold supply lessening, demand increasing compounded together with growing worldwide concerns about the american nations capability to repay their bad debts and I hate to state this, butan escalating distrust in the current world reserve currency in the US dollar, add great upward pressure to the price of gold.
Is There A Glimmer of hope?
I will make no bones about it, for the average person; the press has drawn the wool over there eyes and have zero idea about these developments.
However for the rest of us who would not buy into selling their gold for cashThere is a light at the end of the tunnel.
Better safe than sorry. And that is the reason we are recommending that individuals get gold now!
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