What’s Next for Gold?

http://newsdoors.blogspot.com/2012/12/whats-next-for-gold.html

What’s Next for Gold?

Nowadays, it seems gold has become the commodity the mainstream loves to hate. The headlines have changed for the yellow metal. The gurus are rating gold as “overvalued,” outright holding bearish views on it.

But there are important fundamental reasons behind the multi-year move in the gold prices that are not being recognized. I’ve harped on this in these pages for long time; I believe gold prices will move higher thanks to central banks around the world keeping their printing presses running overtime.

The fundamentals of gold’s demand have shifted. Central banks used to be net sellers of gold. Now, when they are faced with the devaluation of the U.S. dollar and their own currencies, and fluctuating reserves, they are running back to gold, as there are not many options for them left to back their currencies.

http://newsdoors.blogspot.com/2012/12/whats-next-for-gold.html