Morgan Stanley Gives Four Reasons To Be Bullish On Gold

All American Investor

1. The market probably doesn't have to worry about the ECB as a major seller.
2. Physical gold demand is on the rise.
3. Central banks are driving an unwinding of gold hedges.
4. Supply in the gold market is falling as mines produce less.

Read more about the reasons behind these assumption.

Morgan Stanley Gives Four Reasons To Be Bullish On Gold

World Gold Demand

Record investment demand boosts global gold demand to an all time high in 2011

Global demand for gold in 2011 rose to 4,067.1 tonnes (t) worth an estimated US$205.5 billion - the first time that global demand has exceeded US$200 billion and the highest tonnage level since 1997, according to the World Gold Council’s Gold Demand Trends.

The main driver for this increase was the investment sector where annual demand was 1,640.7t up 5% on the previous record set in 2010 and with a value of US$82.9 billion. The pre-eminent markets for investment demand in 2011 were India, China and Europe.

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