Tuesday, May 10, 2005

Reasons for Gold Price to Increase

Alex Wallenwein of a1-guide-to-gold-investments says that the main stream press is suddenly reporting on the reasons why the gold price will increase, despite gold analyists reporting these reasons for over 2 years without any mention in the mainstream news.

Alex says the reasons being stated for the gold prices to increase are:

1. An under supply of newly-mined gold.

2. Gordon Brown striking out on his IMF gold sales proposal, with the US opposing it.

3. The Washington Agreement supporting gold by being generally against excessive Central Bank gold sales.

4. The real possibility of Asian countries buying whatever gold the European Central Banks dish up.

5. The never-ending story of the US trade deficit.

6. Gold is a "de facto currency" and therefore not subject to demand deficiencies caused by world wide economic slowdowns.

7. Gold is an inflation fighter and they can see stagflation approaching.

8. It's a natural hedge against the US dollar.

9. It traded predominantly between $420 and $435 this year, thus setting a new price floor, which is considered a "strong buy signal."

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