Larry Myles Reports
 

2009 Strategy: The Case for Gold continues 

January, 2009

Gold: The Asset of Last Resort ? the only strategy

Compared to most assets, gold has emerged as the clear-cut winner in 2008.  Gold is the only asset that  holds no liability and is completely outside the tottering global credit system.  

Will the unprecedented demand for bullion diminish in 2009?  Not a chance!

Eyeing the North American and European market, nearly every unbiased analyst and bullion expert agree the rush to bullion will continue well into 2009. Even as bullion dealers impose increased premiums and western governments attempt to dissuade investors from buying bullion, the demand for these assets of real value continues to accelerate.

In my opinion, government roadblocks and slanted reports by a few self-serving analysts will be a complete waste of time.


Reason: China and India.  Even as China moves into top spot when it comes to global gold production, their appetite for imported gold remains strong. It is no secret that China would like to purchase 300+ tons of gold, while at the same time does not want to drive the price of gold off the charts.  Understanding China?s role here is extremely important. Of the worlds top three producers (China, South Africa and Australia); China is the only country that has managed to increase gold production. But with Chinese demand for gold also sharply increasing, not an ounce of Chinese production is making it into the global supply market. Remember: China remains an avid net importer of gold!

But the real story comes out of India. In the past, gold analysts have become comfortable ruminating about India?s steady demand for gold - most reports never failing to mention ?the world?s largest consumer of gold jewellery should continue unabated due to gold?s cultural importance?. For more information, go here.

Larry Myles

Larry Myles Reports

http://www.larrymylesreports.com

"Freely earning money may be the barometer of a society's virtue.  Gold is the reality of a society?s true wealth"