New York, New York (PressExposure) February 15, 2012 -- Although gold bullion has had an 11-year bull run, Danny Esposito, co-editor for the financial web site and newsletter Penny Stock Detectives, says this move is not over. Esposito believes that gold bullion prices still have a long way to run.
"The average person has yet to participate in this market," says Esposito.
Esposito believes that the best returns are to be found with the gold mining shares. "The miners are extremely undervalued and warrant a serious look by investors."
Another reason that Esposito highlights to own gold bullion is that, if people lose faith in paper money, then gold mining firms will be the central banks of the world.
"They will own the most important currency in the world; gold bullion," says Esposito.
According to Esposito, gold bullion has been used as a currency for the last 5,000 years. Before we began using the U.S. dollar as we know it today, he points out that the currency was printed as a ratio to central bank gold bullion holdings.
"Throughout history, when governments printed a lot of money, the average person turned to gold bullion to preserve his/her wealth," says Esposito.
Even though governments are not talking much about gold bullion, research by Esposito for Penny Stock Detectives, points out that their actions tell a different story. Up until the financial crisis hit in 2008, central banks were net sellers of gold bullion. However, since the money printing began in earnest in 2008, Esposito noticed that central banks around the world have begun accumulating gold bullion in record amounts.
According to Esposito, in 2010, central banks purchased 367.7 tonnes of gold bullion. In 2011, he observes that this number reached a level not seen since 1971, as central banks bought 430 tonnes of gold bullion.
"This is a staggering number," says Esposito. As he analyzes the numbers, he highlights that the emerging economies of China, India and Mexico have been on a buying binge. "From all indications, the demand for the precious metal from these countries will not subside anytime soon," says Esposito.
Esposito notes that "Governments will be forced to continue to print money to help their economies, which will push gold prices even higher."
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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