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Gold Bullion Demand up 13%, According to Top Financial Site Penny Stock Detectives(May 30, 2012)
New York, NY (PRWEB) May 30, 2012
In a recent Penny Stock Detectives article, editor Danny Esposito highlights that, for the first quarter of 2012, the World Gold Council has indicated that demand for gold bullion exchange-traded funds (ETFs), gold bullion bars and coins increased 13% from the first quarter of 2011. Esposito notes that central banks around the world have continued to be buyers of the gold bullion to the tune of 80.8 tons.
What is critical to note is that demand is increasing, while the average price for gold bullion was higher than it was last year; 22% higher at an average price of $1,690.57 per ounce, comments Esposito.
According to Esposito, due to the higher price of gold bullion in the first quarter of 2012, as compared to the first quarter of 2011, gold bullion demand actually fell five percent, when taking into account jewelry and technology demand.
The numbers were impacted by the year-over-year drop in demand from India, notes Esposito. India, however, is a particular case. With this country historically being the largest buyer of gold bullion, a jewelers strike there in the first quarter skewed demand for the precious metal.
The Indian government has been trying desperatelythrough raising taxesto get people to focus on other investments outside gold bullion in order to stimulate the economy, says Esposito. Jewelers instead went on strike and so did not increase their inventories of gold bullion during the quarterwhich meant no demand.
As reported in Penny Stock Detectives, the other issue plaguing gold bullion investment demand in India is the fact that the rupee has declined 20.93% against the U.S. dollar since last year. The declining rupee is making buying gold bullion more expensive for the average person in India, which further slows demand.
Esposito believes it is critical to note that, had India simply maintained its purchases of gold bullion, demand would have hit another record. Also, considering the staggering 46% decline in gold bullion demand from India year-over-year, the slack was more than picked up by the central banks in the world and other investors.
According to Esposito, gold bullion prices may have fallen partly due to what occurred in India, as the largest gold bullion buyer doesnt have the purchasing power it had last year. However, investors around the globe are stepping in to buy what India isnt.
Investors Esposito includedare increasingly worried about the global financial situation, which continues to deteriorate instead of improve. As such, Esposito says that gold bullion demand will continue to rise, which will eventually lead to higher prices.
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 This which 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/prweb9549581.htm.
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