The Capital Gold Group - 21st Century Gold Rush
The Capital Gold Group - 21st Century Gold Rush
Capital Gold Group, Inc. offers physical gold products that provide safety and security for your investment portfolio by acting as “Portfolio Insurance”. A quality asset, gold has proven its vital role in maintaining portfolio value and stability. An asset allocation in physical gold is the missing link in most portfolios today.
Gold Price Forecast
Since 2001, the price of gold has risen over 350%. Factors influencing the gold bull market include a continually weakening U.S. Dollar, inflation, volatile stock markets and global demand. Increased investment by U.S. pension funds and institutional investors has also had a phenomenal impact.
Merrill Lynch stated in its North American Precious Metals Weekly Report dated April 9, 2007, “This is a run that can be expected to last at least another five years and ultimately see bullion break the $1,500/oz. barrier.” According to the New York Times, Bloomberg Markets forecasts that “the price of gold will reach $3,000/oz. within the decade.”
Global Supply & Demand
Global demand for gold has never been higher, and according to the World Gold Council, is now outpacing supply. Demand factors include the legalization of private ownership of gold in China followed by the opening of the Shanghai Gold Exchange in 2002, when billions of Chinese consumers were able to purchase gold for the first time. Analysts predict that the rapidly rising purchasing power of Chinese consumers and the growing appetite for investment opportunities are expected to continue to push up the demand for gold. Adding further to gold demand, China’s gold futures made a strong debut on the Shanghai Futures Exchange on January 9, 2008, as international gold prices repeatedly hit new highs, driving the price of gold over $1,000.
In India, the world’s largest consumer of gold, 2007 annual investment demand was the highest on record, having more than doubled since 2004. Other countries hoarding gold include Russia, which has been storing massive surpluses derived from exporting natural resources in gold, and oil producing nations such as Saudi Arabia, Dubai and Qatar, all preserving their oil profits in gold.
In contrast, gold supply is at an all time low and may decline as much as 15% in the next five years due to lack of new production and minimal gold exploration in the past ten years.
Record demand for gold and dwindling supplies provide a solid basis for investment.
Tags: Gold Rush, gold supply, India, Precious Metals Weekly, Shanghai Gold Exchange, The Capital Gold Group