Global Demand for Gold No Signs Yet of Wavering

Global frenzy for gold, considered by many as a safe haven to guard one's personal fiscal health, still has a long way to go.

"Demand for gold from investors in China, India and elsewhere around the globe shows no signs of slowing down anytime soon," Paul Watson, CEO of Green Technology Solutions Inc., said.

As prices reach new highs, gold mining and development has become more profitable than ever before, he added.

"Throughout history, gold has been a far more popular investment option in Asia than in the West, and as more and more Chinese get wealthy, gold stands out as a sound investment and the ultimate hedge against inflation."

China, the world's second-largest economy, had in fact been encouraging its citizens to buy and hold physical gold, either in jewelry, coins or in bullion bars, in a bid to build financial reserves in assets stronger than the U.S. dollar, euro and other weakening currencies.

Chinese consumer demand for gold bars and coins rose 24 per cent from last year to 60.2 tonnes in the third quarter of 2011, while demand for gold jewelry hiked 13 per cent.

In November, the World Gold Council reported that strong demand in investment and jewelry will drive China's total gold demand to 750 tons this year.

Such appetite will ultimately aid and push further the yellow metal's unprecedented decade-plus bull run. The price of gold bullion is going towards its 11^th year of consecutive annual gains. Fears of a fiscal recession of pandemic proportions will further boost the metal, displacing the boom-and-bust cycle norm. Prices are expected to hit $2,000 per ounce by mid-2012.

"Gold is becoming the new global currency," Watson said. "Unlike dollars, of course, you can't simply print more gold whenever you'd like. To cover demand, you've got to dig it out of the ground."

GTSO is currently finalising a strategic partnership with Chery Minerals LLC to develop new gold resources in the African nations of Mali, Burkina Faso and Ghana. Africa is seen by many as the next hub of global gold production.