Gold Supply Falls Short of Demand Reports Kevin DeMeritt of Lear Financial
The discovery rate of major gold deposits has declined in each of the last eight years while the demand for gold by investors and industry has increased.
Santa Monica, CA (PRWEB) May 1, 2007 -- Investment demand, jewelry demands and high tech industry demands continues to strengthen but this stronger demand is not being met by world wide gold producers thanks to declining production from South Africa in particular.
In China, the world's third largest gold consumer and fourth largest gold producer there is a long-term shortage of gold, reports top gold investment advisor Kevin DeMeritt of Lear Financial, one of the top gold coin companies in the U.S.
China's annual consumption is about 200 tons, while its production equals roughly 180 tons a year.
According to Lear Financial, it is difficult for China to maintain major long-term growth in gold production because of limited resources and production capability.
Lear Financial believes the price of gold will continue to climb as demand continues to strengthen while this demand is not being met by higher supply.
According to recent research from Metals Economics Group (MEG) discovered deposits of more than 2.5 million ounces enough to attract the interest of major gold producers, were not adequate to replace their production.
To make the discrepancy even worse, only 52% of the discovered resources had been upgraded to reserves," MEG said.
MEG expects an average increase in mined gold production of about 3% annually from 2007 to 2010. This level of projected increase may be inflated further if current high gold prices prevail, and actual changes will of course depend on longer term gold market factors," MEG said.
As a long term solution the world's largest 20 gold producers are combating these critical shortages with increased exploration budgets but in the short term gold prices will continue to climb.
Lear Financial reports that there is a good chance the price of gold in 2007 will exceed the 2006 high of $725 and this upward trend is likely to continue into 2008.
To learn more about investing in gold and gold bullion through Lear Financial call 310-656-3272 or visit www.goldcentral.com.
About Gold Central
Lear Financial, Inc., is dedicated to providing Web investors with all the pertinent information and tools needed to securely purchase, sell and trade gold online. Lear Financial offers a diverse suite of intelligent investment resources including real-time pricing, regular e-mail alerts, newsletters, and a live staff available to answer real-world questions. Lear Financial not only enables investors to stay current on the latest developments in the gold market, but also gives investors the flexibility to move gold as expeditiously as conventional paper investments.
Contact
Kevin DeMeritt
Lear Financial, Inc.
800-965-0580
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