Central Banks Aggressively Buying Gold, Commodity Report by Top Financial Newsletter Profit Confidential

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In March 2012 alone, 57.9 tons of gold bullion were purchased by world central banks, according to a report by Michael Lombardi, lead contributor to Profit Confidential, and he believes more buying should be expected on any pullbacks.

Central Banks Aggressively Buying Gold, Commodity Report by Top Financial Newsletter Profit Confidential

Central Banks Aggressively Buying Gold, Commodity Report by Top Financial Newsletter Profit Confidential

“To give some perspective on this number, in 2011, central banks bought just under 440 tons of gold bullion, a rate of 37 tons a month,” says Lombardi.

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In March 2012 alone, 57.9 tons of gold bullion were purchased by world central banks, according to a report by Michael Lombardi, lead contributor to Profit Confidential, and he believes more buying should be expected on any pullbacks.

“To give some perspective on this number, in 2011, central banks bought just under 440 tons of gold bullion, a rate of 37 tons a month,” says Lombardi.

In the recent Profit Confidential article, Half of World Gold Production Being Bought by Central Banks, Lombardi believes the central banks took advantage of the lower prices in gold bullion to buy significant amounts of the metal.

“Should the current rate of buying by central banks continue at this pace, central banks will purchase a staggering 700 tons of gold bullion in 2012,” says Lombardi.

According to Lombardi, the gold demand from central banks does not include the largest central bank buyer: the People’s Bank of China. He believes that the Chinese are not reporting their gold-buying numbers to the International Monetary Fund.

“But we know the Chinese government is accumulating a staggering amount of gold bullion to back their currency, the yuan,” says Lombardi.

Lombardi believes that, if the People’s Bank of China continues to accumulate gold bullion at the rate he estimates, roughly half of the gold bullion supply will be picked up by central banks in 2012.

“With supply steady and central bank buying increasing at a fast rate, gold bullion prices will have to move higher to satisfy other investor demand around the world,” says Lombardi.

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.

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