Due to the uncertainties around the world, 2013 will see even stronger price appreciation in gold.
LONDON(BullionStreet): Demand for gold is growing and topproducer China is expetced to overtake India as top consumer as well this year, according to financial expert Michael Lombardi.
In a recent Profit Confidential article, Lombardi notes that the Chinese demand for gold will reach 869 tonnes in 2012. Due to the uncertainties around the world, 2013 will see even stronger price appreciation in gold, he added.
“Gold has been a store of value and a unit of transfer for longer than the fiat currency created by central banks,” says Lombardi. “… Since the financial collapse in 2008, gold has become the only savior.”
Stating that gold still provides safety against uncertainty, Lombardi cites, as an example, the recent jump in gold prices when the Pentagon announced that Iran tried to shoot down a U.S. unarmed and unnamed surveillance drone on November 1.
In the article Uncertainty, Demand and Currency Debasement to Push Gold Prices Even Higher,” Lombardi points out that central banks are continuously printing their respective currencies, and this will also help drive up gold prices.
From 2008 to 2011 alone, the Federal Reserve has printed $2.3 trillion. Other central banks are doing the same,” notes Lombardi. He concludes, “…gold meets all the criteria to soar even higher.
Uncertainty is still present, demand is increasing, and central banks are expected to continue printing fiat money.” 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.