What’s fueling the purchases of gold by central banks? According to Lombardi, “The answer is simple. The euro has proven to be a catastrophe and the U.S. is continuously failing to get its debt situation under control.”
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New York, NY (PRWEB) November 29, 2011
Central banks bought a near-record level of gold last quarter. According to Profit Confidential, this is a dangerous sign for the future.
After years of heavy selling, central banks became net buyers of gold in 2011 for the first time in about 20 years. But that’s not the big news, according to Michael Lombardi, lead contributor to Profit Confidential.
“Central Banks are running away from paper currencies,” he states.
The World Gold Council reports that world central banks made their biggest purchases of gold during the third quarter of 2011 in over two decades, with a slew of first-time central bank buyers entering the gold arena for the first time in years.
In Profit Confidential, Lombardi writes, “If the buying continues… world central banks could end up making 2011 the biggest year for gold central bank purchases in 40 years.”
What’s fueling the purchases of gold by central banks? According to Lombardi, “The answer is simple. euro has proven to be a catastrophe and the U.S. is continuously failing to get its debt situation under control.”
With 70% of world central banks having adopted the U.S. dollar as their reserve currency, and given what looks like a continued devaluation of the greenback, foreign central banks are looking for an alternative.
Profit Confidential analysis has consistently shown that large investors and central banks have been moving into gold bullion.
Lombardi, of Profit Confidential, also has an in-depth analysis entitled, Top Five Reasons Why Gold Prices Will Move Even Higher.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%. To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.