Gold Supply Failing to Meet Increased Demand In Asia And Middle East
New wealth in Asia and the Mid East are increasing the demand for gold while new supplies are limited by the skyrocketing cost of exploration and mining reports Lear Financial
Santa Monica, CA (PRWEB) May 24, 2007 -- There are no new significant gold discoveries, and many of South Africa's mines have experienced production declines in recent years. Thus new supply is not able to meet increased demand.
"Gold is a traditional means of hoarding wealth, and represents a way to buy economic security in much of Asia and the Mid East," said top gold investment adviser Kevin DeMeritt of Lear Financial, one of the top gold coin companies in the U.S.
"And in these parts of the world individual wealth is growing rapidly," adds Kevin.
Lear Financial believes increased demand and falling supply will continue to accelerate the price of gold. Political instability in gold producing countries like South Africa can cause mines to temporarily close and goal prices to soar on limited supply. Russia, another major gold mining country, is holding back a larger percentage of their production to hold as reserves; further limiting supply.
Lear Financial predicts gold production will increase slightly over the next five years but not enough to keep up with investors demand. Sales from central banks gold reserves will make up some of the difference but not enough to meet expected demand.
Increasing global geopolitical instability, weak U.S. economic fundamentals and the preponderance of foreign investment in U.S. fixed-income securities imply dollar depreciation will continue in 2008 and suggest the possibility of large dollar devaluation. These factors are expected to increase the demand for gold among investors.
"I would not be surprised to see gold reach $900- $1000 by this time next year", said Kevin.
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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