The central banks of the East and the central banks of
emerging markets continue to buy gold bullion at a
steady pace, but in the West, talks of gold bullion being a bubble have
resurfaced. But according to Michael Lombardi, lead contributor to Profit Confidential, that is a mistake
as there’s more room for gold to run.
In the article “Why
the Bull Market in Gold Bullion Is Far From Over,” Lombardi notes that South
Korea’s central bank bought another 16 tonnes of gold bullion in July.
“Over the last 13 months, South Korea’s central bank
increased its gold bullion reserves by five times, bringing its total gold
bullion holdings to 70.4 tonnes, or $3.0 billion,” says Lombardi.
According to Lombardi, this has continued the trend of
emerging market central bank buying of gold bullion of the last few years.
“Kazakhstan’s central bank has made it publicly known that
it plans to increase its gold bullion foreign reserves from 12% to 15%,” says
Confidential lead contributor scoffs at the notion that gold is in a bubble:
“The definition of a bubble includes the concept that everyone is aware of it
and everyone from investors to the average consumer wants to get in on the
Lombardi notes that not many people tell him that he needs
to own gold bullion today because governments are printing money.
“The last party I attended had no mention of gold bullion,”
says Lombardi. “Besides central banks in the East buying, there is little talk
of gold bullion in the popular media here in the West.”
“As long as central banks continue to buy gold bullion, you
can set aside the argument that gold bullion is in a bubble, because it is not
exhibiting any of the characteristics of a bubble,” concludes Lombardi.
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.
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 www.profitconfidential.com.