“Omega Trading”– Central Banks Not Selling Their Gold …

June 30, 2010 - PRLog -- “Omega Trading” says that investors questioning the wisdom of holding gold would do well to look at a handful of prominent central banks around the world that appear to be increasing their reserves or holding on to what they have rather than selling.

According to “Omega Trading” analysts, central banks like those of China, Russia, India and Saudi Arabia – hardly insignificant – are increasing the proportion of their foreign currency reserves held in gold. This, they suggest, reflects the slow but steady erosion of confidence in the fiat or paper currencies that dominate the global financial system. http://www.goldprice.org/

Governments around the world have created trillions of dollars worth of currency to combat the financial crisis and the subsequent recession but this has caused a widespread loss of purchasing power.

China has been quietly raising its gold reserves and, as the world’s largest producer of the yellow metal, many are at a loss as to how to quantify its holdings. Gold produced in China never leaves China – it is all traded on the Shanghai exchange and Chinese national are actually encouraged to buy it as a solid investment.

“Omega Trading” traders believe that pullbacks in the price of gold are inevitable but insist that the long-term trend in the price remains firmly upwards.