The price of gold is higher than it is in the 17 years. And it is likely to go much higher. Why?
There is a very interesting article in the October 10, 2005 edition of the New York Times. The article is actually about how gold mining companies are harming the environment. But, as an investor, here are some important points that I consider important for the gold market ...
The amount of gold still to be mined is very small and it comes from the poorest countries in the world. 70% of the gold mined in now in poor countries.
To get to make a ring, an ounce of gold miners to dig and haul away 30 tons of rock and sprinkle it with diluted cyanide.
According to the Environmental Protection Agency, the cost of cleaning up metal mines reach 54000000000 $.
According to the World Gold Council, jewelry sales rose to a record $ 38000000000 last year.
Only in the last year, gold sales are up 11% in China and a whopping 47% in India, a country with nearly one billion people who are huge gold consumer.
The United States is the second leading consumer of gold (second to India). The U.S. government has 8134 tonnes of gold in reserves. The Federal Reserve and other major central banks have an agreement for the sale of their reserves severely restricted. This will serve to support. The price of gold
Even experienced investors have a renewed interest in gold as a hedge against inflation and a falling dollar.
So we have a classic supply / demand imbalance that will last for years. The long-term fundamentals are very favorable for gold investments.
Larry Holmes invites you to Your common sense guide to financial and investment success. Visit
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