According to Michael Lombardi, lead contributor to Profit Confidential, there is mounting evidence of large amounts of buying in the gold market by India, Japan and China.
New York, NY (PRWEB) April 30, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, there is mounting evidence of large amounts of buying in the gold market by India, Japan and China.
In the article, Two Major Countries Join in China’s Quest for Gold, Lombardi says that, culturally, Asia views gold bullion and the reasons for buying gold bullion differently than we do here in the West.
“An example of this occurred in India last month, as the Indian government wanted to impose a high tax on buying gold bullion. As a result, gold jewelers went on strike to protest the tax,” says Lombardi.
Lombardi reports that this affected the amount of gold bullion that was imported by India in the month of March.
“Now that the gold jewelers are open for business again, imports of gold bullion are set to rise once more, which should be supportive of gold bullion prices,” says Lombardi.
Gold buying has spread to other Asian countries, like Japan. Lombardi points out that, ever since the Japanese government reported a budget deficit, the Japanese consumer increased its buying of gold bullion to be at a 15% greater pace than last year
“The Japanese consumer bought 15% more gold bullion in 2011 than 2010. Thus far in 2012, this trend has shown no signs of slowing down,” says Lombardi.
Lombardi also points to China, where in 2009 China purchased four tonnes of gold bullion from Hong Kong. In 2011, Lombardi reports that China purchased 46 tonnes of gold bullion, an 11-fold increase.
“In the first two months of 2012, Hong Kong is reporting that China’s purchase of gold bullion has jumped 600% from last year,” says Lombardi. “At this pace, China will easily surpass the 46 tonnes of gold bullion it purchased from Hong Kong in 2011.”
Lombardi believes that the stocks of the junior and senior gold mining companies will come back to life in the not-too-distant future, as the drive for more gold will lead to a sustained move up in the price of gold.
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%.
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