Financial Newsletter Profit Confidential Predicts That Gold Will Have 12th Consecutive Positive Year

(prHWY.com) January 9, 2012 - New York, NY -- The year 2011 marked the 11th consecutive year that gold bullion prices closed the year higher than they started. Michael Lombardi, lead contributor to popular financial newsletter Profit Confidential, predicts that 2012 will continue the positive trend for gold prices.

"We need to understand why gold bullion rises in price," says Lombardi. Writing in Profit Confidential, he outlines three fundamental drivers: 1) as a store of wealth during times of questionable fiat (paper) money; 2) as an inflation hedge; and 3) as a commodity (jewelry).

"I was in India this summer," says Lombardi, "People in that country love gold. Those who can afford it, flaunt it." India has overtaken China as the world's biggest consumer of gold jewelry.

With India's economy close to booming, as more people enter the middle class in India, Lombardi believes that demand for gold jewelry will rise in India, pushing gold bullion prices higher.

Lombardi has written that he believes rapid inflation will become an end result of the Federal Reserve's expansive monetary policy. "If the Fed keeps short-term interest rates near zero until mid-2013, interest rates will have been near zero for five years. In American history, we've never had a period of zero interest rates for five years," says Lombardi.

As mentioned, the third reason Lombardi outlines for gold bullion prices to rise is too much fiat money in the system. "In its effort to expand the money supply to save the economy from a second Great Depression, the Fed 'flooded' the system with money," says Lombardi. Historically, too much money in the system has resulted in higher gold bullion prices.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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