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Press Release

Asian Central Banks Buying up Gold in 2012; Special Report by Leading Financial Web Site Penny Stock Detectives

>PRWEB.COM Newswire

New York, NY (PRWEB) July 11, 2012

In a recent Penny Stock Detectives article, editor Danny Esposito points out that as investors sell gold bullion because of no third round of quantitative easing (QE3), Asia continues to buy the precious metal at ever-increasing rates. Esposito notes that so far in 2012, central banks in Asia have increased their gold bullion holdings by a large percentage, and this buying is not subsiding anytime soon.

“Kazakhstan’s central bank publicly disclosed recently that it wants gold to represent 20% of all its assets; currently, the precious metal represents just 12% of the central bank’s assets,” explains Esposito. “This means Kazakhstan will be a buyer of gold bullion for most of 2012.”

In comparison, Esposito notes South Korea only has one percent of its assets in gold. The central bank there has expressed its desire to own more, as well.

Although official numbers from China are unavailable, its imports of gold are surpassing last year’s record amounts, observes Esposito. If current demand holds, it looks like China will become the largest buyer of the precious metal in 2012.

Besides the government of China buying gold bullion, the Chinese people have a long history with the precious metal. They are buying it to protect themselves from inflation that is evident in China, and because they have little trust in the country’s real estate and stock markets, Esposito believes.

The people of India feel the same way, but although their demand and desire for owning the precious metal has not subsided, their ability to buy it has been severely hampered. The Indian currency—the rupee—has fallen dramatically over the last year, making gold bullion more expensive for the average person in India to purchase, notes Esposito.

Gold prices have nonetheless come under pressure recently. Esposito believes this is because investors believe that since the Federal Reserve announced no QE3, gold will not move higher.

“The Federal Reserve did say that QE3 was ready to be launched at any time if the economy in the U.S. continued to deteriorate. With Asia’s economy slowing rapidly and Europe—for the most part—in a recession, the economic numbers here in the U.S. have deteriorated quickly. Therefore, it will not be long before the economy contracts to the point where QE3 will become necessary,” reasons Esposito.

He says that while all the focus has been on QE3, investors are not paying attention to the increased demand for the precious metal from central banks in Asia.

Aside from China, many other countries in Asia have recently increased their holdings of gold bullion and have expressed a desire to own more. The economic distresses around the world could lead to another financial crisis. Since Asia has a long history with the precious metal, its countries feel gold is the safest currency to own should another financial crisis occur, according to the Penny Stock Detectives editor.

“They are not only expressing this desire, they are acting upon it by increasing their holdings of gold bullion. Investors would do well to pay attention,” Esposito concludes.

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.

Read the full story at http://www.prweb.com/releases/2012/7/prweb9689130.htm

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