In 2011, the world’s central banks accumulated the most gold in four years,” notes Leong. “The active buying was largely driven by the weaker greenback along with the perceived higher risk in holding U.S. dollars.
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New York, NY (PRWEB) October 04, 2012
George Leong, financial expert and contributor to Profit Confidential, reports that, considering recent international events and the declining state of the global economy, gold’s recent ramp-up could reach the $1,800 and $2,000 levels.
“In 2011, the world’s central banks accumulated the most gold in four years,” notes Leong. “The active buying was largely driven by the weaker greenback along with the perceived higher risk in holding U.S. dollars.”
In the article “Here’s Why Gold Is Heading Higher,” Leong argues that the Federal Reserve’s worries and its subsequent decision to implement a third round of quantitative easing (QE3) indicate that America has some rough economic times ahead.
“The same goes for Japan and China, where we are also seeing quantitative easing. All of the easy money is expected to drive spending, and the result will likely be inflationary pressure, against which gold is purchased as a hedge,” explains Leong.
Leong also notes that, with the European debt crisis, the entire eurozone appears to be heading towards another recession, including the region’s two biggest countries, Germany and France.
“On the political front, there is turmoil in the Middle East, and there’s a chance, albeit low, that Iran will be targeted by the United States and the United Nations,” says Leong.
“Gold is bullish at $1,770, well above its 50-day moving average,” says Leong, who views downside moves as an opportunity to accumulate the precious metal given the current macro situation.
Leong concludes by advising investors to buy a mixture of exploration-stage gold miners along with small to large gold producers.
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.