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Gold Mining Investments

Why Gold?

MINING FOR GOLD IN THE 21ST CENTURY

With the current unprecedented global demand for gold, and its resulting record price, the discovery of any substantial gold reserve would produce an enormous return on investment. With gold at an historical high - over $1,800 an ounce and expected to rise- it is no wonder over half of all non-oil mineral exploration is aimed at mining gold. Unlike an oil well, which has the ability to produce for many generations, the average life of a gold mine is less than 10 years, creating a constant need for new discoveries. Fueled by the continuing rise in the price of gold, which has experienced a 33% increase in this past year alone, the demand for new discovery of this precious metal will only continue to grow.

WHY INVEST IN GOLD?

Historically, investing in gold and gold-related assets has been a time tested method in preserving value in one's portfolio when national currencies are depreciating. As the world's fiat money supply continues to increase, so will the value of gold. As the only true global currency, gold will continue to become a safer choice for investors searching for a shelter against the current hyperinflation.

Anyone looking for a substantial return on investment should consider the following facts about gold and gold-related investments:

DEMAND EXCEEDS SUPPLY: For the last three decades, new gold discoveries have been decreasing at a rate of 4 million ounces per year, yet demand for the commodity has been on the rise.
GLOBAL FOCUS: Out of the world's top 100 most prospective mining projects, 67 of them are aimed specifically at gold.
DRIVING FORCES: Most gold consumption occurs in Asia, where wealth is greatly increasing, along with its demand for gold. (Note: China imported 220 tons of gold in the first two months of 2011; it took close to 10 months to reach that number in 2010).
HISTORICAL HIGH: The price of gold hit an historical high in April of this year at over $1,800 an ounce.
HISTORY REPEATS ITSELF: The peak of gold's last bull market came in 1980 when the commodity hit $875 an ounce. Adjusting for inflation and economic output, that's today's equivalent of over $5,000 an ounce.