But demand for gold bullion in China is just one part of the demand equation. As I have documented in these pages many times, mints around the world are working in overdrive mode to satisfy the record demand from consumers and investors for gold bullion. (See “The Supply Shortage in the Gold Pits No One Is Talking About.”)
Dear reader, don’t cave in to the mainstream opinion that the U.S. economy is improving and that there is no need for gold anymore as a hedge against a weak economy and inflation. These are the same people who told us in 2005 and 2006 that a new era of homeownership was upon us and that the housing market was where the action was.
I like buying investments when they are down and out, when other investors shun them. And that’s why I’m liking gold more and more. Supply is tight; demand is rising. It’s only a matter of time before prices reflect this supply/demand imbalance.
This article is brought to you courtesy of Michael Lombardi from Profit Confidential.