China May Be Buying Gold "Anonymously” Lombardi believes that China doesn’t want to advertise to the world that it is buying gold bullion; otherwise, the price would rise in anticipation of the purchases. He believes that the People’s Bank of China would perform the operation quietly. Past News Releases RSS

Michael Lombardi, lead contributor to Profit Confidential, believes that purchases recently made through the Bank of International Settlements (BIS) were on behalf of a central bank. In the article, "Central Banks Pile into Gold on Price Drop," Lombardi states that, while we don’t know the identity of that central bank officially, he believes that it was the People’s Bank of China.

“I’ve been writing for a while about China’s desire to own more gold bullion in order to back its currency, the yuan,” says Lombardi.

Lombardi believes that China doesn’t want to advertise to the world that it is buying gold bullion; otherwise, the price would rise in anticipation of the purchases. He believes that the People’s Bank of China would perform the operation quietly.

The BIS is an institution created by the central banks around the world. Lombardi says that the BIS essentially is a bank for all of the world’s central banks.

“On February 29, the BIS stepped in and bought four to six tons of actual gold bullion worth roughly $250-$300 million,” says Lombardi. “An educated guess would be the People’s Bank of China, but many of the emerging economies’ central banks are looking to buy gold, such as Brazil, Korea, India and Thailand, so it could have been any one of them.”

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%.

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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.