Demand and Supply Fundamentals

Demand and Supply tables are the types of dry economic statistics that one tries to avoid like the latest flu virus. But before you skip this section, pay attention that most experts believe that the current unusually strong supply-demand fundamentals will be the motor that drives the secular bull market in gold for many years into the future. If wealth protection or asset preservation provides the basic motivation of for gold ownership. Then profit potential could be an extremely attractive sidebar to gold’s story as we progress through the first ten years of the twenty-first century.

Understanding the fundamental relationship between how much gold os being produced in the international supply and how much is being consumed in the international demand will be the key to making you an updated, informed and confident gold investor in the future. Many gold analysts presently believe that gold will surpass its previous high of eight hundred seventy-five dollars per ounce at any point of in the first ten years of the twenty-first century. Such optimism is based not only on the burgeoning dollar and economic crisis, which is formidable in its own right, but also on a convergence of demand and supply factors.