6
Central Banks are Nearing an Inflection Point When They will be Reluctant to Provide More Gold to the Market
Far Eastern central banks who are accumulating enormous quantities o US dollars are rumored to be buyers o gold to diversiy away rom the US dollar.
7
Gold Is Increasing In Popularity
Prominent developing countries such as China, India and Russia have been accumulating gold. In act China with its 1.3 billion people recently established a National Gold Exchange. Demand in China is expected to rise sharply and could reach 500 tonnes in the next ew years.
8
Gold as Money is Gaining Credence
Islamic nations are investigating a currency backed by gold (the Gold Dinar), the new President o Argentina proposed, during his campaign, a gold backed Peso as an antidote or the inancial catastrophe which his country has experienced and Russia is talking about a ully convertible currency with gold backing.
9
Rising Geopolitical Tensions
Te deteriorating conditions in the Middle East, the US occupation o Iraq, the nuclear ambitions o North Korea and the growing conflict between the US and China due to China’s reusal to allow its currency to appreciate against the US dollar headline the geopolitical issues, which could explode at any time. A earul public has a tendency to gravitate towards gold.
10
Limited Size of the Total Gold Market Provides Tremendous Leverage
All the physical gold in existence is worth somewhat more than one trillion US dollars while the value o all the publicly traded gold companies in the world is less than one hundred billion US dollars. When the undamentals ultimately encourage a strong low o capital towards gold and gold equities, the trillions upon trillions worth o paper money could propel both to unathomably high levels.