You Are Here: Home >> Business >> Markets >> United States >> 5 reasons gold could hit a record high this year - Wealth...

5 reasons gold could hit a record high this year - Wealth Management

March 18,2013

Five reasons why gold could reach new all-time highs, from Aubie Baltin of 24hgold.com

5 reasons gold could hit a record high this year - Wealth Management

1

1) The Feverish Growth of Fiat Money: The USA, Europe, China and most of the developed world is printing money much faster than the amount of new gold being mined or discovered. Runaway money printing presses are always bullish for gold.

2) The Feverish Demand For Gold: As central banks continue to print, individuals are continuing to relentlessly buy gold, especially in the world's two most populous nations, China and India, which in 2002 accounted for 23% of world gold demand. Today, just these two nations alone make up nearly half of all demand at 47%. This is just the beginning. Meanwhile, less than 2% of all investment funds are invested in gold. Does that sound like gold is in a bubble?

3) Even Central Banks Have Begun Buying: Central banks, especially RUSSIA and China as well as the developing nations' Central Banks are buying and hoarding gold at a record pace. It is my belief that China will drastically expand its gold buying year after year on a cumulative basis in an effort to accumulate enough gold to back the Yuan by at least 25% to 50% with gold in their effort to replace the US $ as the world's reserve currency.

4) High Demand Meets Short Supply: The other side of the equation is supply. The gold mining industry is struggling to find more gold. The industry as a whole spent a record $8 billion in 2011 to explore for gold and yet their successes for gold discoveries are declining drastically. Bloomberg reported that from 1991 to 1999 there were 40 three million oz. or more gold discoveries, yet from 2001 to 2009 there were only that.

5) My Favourite Reason For $2,400 Gold in 2013: The vast majority of analysts consistently forecast too low and are even predicting declining gold prices farther out. But guess what? They've been consistently wrong for 12 years. Meanwhile, breakeven costs continue to rise meaning the price floor keeps rising. And only the richer discoveries can and will be exploited. That's one reason why I expect gold prices to set a new all-time record price high in 2013, of $2,400.


358

views

PDF Print Email Report

Contact

Richard W Davey Organization

Richard Davey

Featured Sections

Featured News

Explore more in 5 reasons gold could hit a...

Users

News

Us

Channels

Partners

Copyright © 2013 Free-Press-Release Inc. All rights reserved.

About UsTermsPrivacyContact Us

Share with your friends

Tell your friends the great news you've just found!



Unable to connect the network ,please try again.

Please enter the right code in the image!

Congratulations!

Your message has been sent to your friends.

Contact to the author

Send a message to the author!



Unable to connect the network ,please try again.

Please enter the right code in the image!

Congratulations!

Your message has been sent to the author.

Report to Free-Press-Release.com

Report to Free-Press-Release.com



Unable to connect the network ,please try again.

Please enter the right code in the image!

Congratulations!

Your message has been sent to the author.