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Central Banks Pour into Gold, Reports Top Financial Web Site Penny Stock Detectives(May 11, 2012)
New York, NY (PRWEB) May 11, 2012
Danny Esposito, editor for Penny Stock Detectives, believes that, as the price of gold corrected in March, central banks around the world seized the opportunity to buy. According to the editor, the International Monetary Fund released a report that revealed that, in March of 2012, central banks not only took advantage of the lower prices in gold bullion to buy, but they were also buying in large quantities. In his recent Penny Stock Detectives article, Esposito noted that, in total, a staggering 57.9 tons of gold bullion was purchased by central banks around the world in March.
To put some perspective on this number, Esposito points out that, in 2011, central banks bought just under 440 tons of gold bullion, as reported by the World Gold Council. This was close to a 50-year high in gold bullion purchases, notes Esposito.
It is, of course, difficult to extrapolate from Marchs numbers, but taking into account the first three months of the year, it is possible that, should this pace of gold bullion buying by the central banks around the world in 2012 continue, the total will reach 700 tons of gold bullion purchased, which would make 2012 a record year, argues Esposito.
According to the recent Penny Stock Detectives article, the contention of the G7 is that gold is a commodity that actually does not have many uses outside of jewelry. The nations outside the G7 have long histories and have lived through financial crisis and/or have been passed down stories of financial crisis from their ancestors. They understand that gold has been used as money for 5,000 years. In times of crisis, money is debased by money printing, says Esposito, which results in citizens losing their purchasing power and eventually everything that they worked for. Gold preserves purchasing power, because it cannot be printed or manipulated, believes Esposito.
According to Esposito, we can see from the past that the money printing currently taking place is on a scale never witnessed before in history. Trillions upon trillions are being created by the U.S., Japan, the U.K., and the European Union. He says the contention is that there are no consequences to this money printing, but these central banks who reside in countries that have a long history beg to differ. They are speaking with their actions, not words.
Esposito also points out the question: if gold is just a commodity, then why not sell it? G7 nations have not sold one ounce in the last five years, according to the editor. He thinks that investors should do as central banks do, not as they say. Esposito himself is following what central banks are doing.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
To see the full article and to learn more about Penny Stock Detectives, visit http://www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss Thiswhich highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/5/prweb9494307.htm.
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