AFRICANEWSWIRE.NET (March, 10 2012) In a recent l-market-run-far-from-over">article, Danny Esposito, co-editor for Penny Stock Detectives, reveals that investors who are kicking themselves for not participating in the great bull run in gold thus far in 2012 need not worry. According to Esposito, the main reason gold is rising is because of central banks printing money around the world. Since this trend doesn’t look like it will subside anytime soon, Esposito is confident that the gold bullion bull market run still has plenty of room to run.
“Historically, gold bullion has always done well when central banks print money,” comments Esposito. “In the last three years, central banks have been on a money-printing binge never seen before in the history of the world!”
Note that all the amounts quoted below have been converted from their local currencies to U.S. dollars.
Esposito notes that, in the U.S., the Fed has printed $2.0 trillion in the last three years. At the latest Fed meeting, Ben Bernanke has hinted that, if the economy doesn’t improve, more money printing could be on its way, which is supporting gold bullion.
According to Esposito’s article, over the last three years, Japan has printed $800 billion, with more on the way. Not to be left out is the Bank of England, which announced a $79.0-billion program just last month. This brings its three-year money-printing total to over $513 billion.
The European Central Bank doesn’t want to be left out of the money-printing party, sposito notes. It has expanded its balance sheet by $1.0 trillion over the last three years, according to the Penny Stock Detectives article. Its latest LTRO program adds another $712.2 billion to the money-printing pot.
Quietly, China has also printed more than $1.5 trillion over the last three years, comments Esposito. In February 2012, in order to help its slowing economy, China has lowered its bank reserve ratio, which is usually the step taken before the Bank of China prints money.
“In an attempt to help the slowing global economy spring back to life, the major central banks of the world are printing money,” says Esposito. “This trend looks to continue at least for the better part of 2012. Historically, when central banks print, investors have flooded into gold bullion to protect themselves.”
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