Reasons To Own Gold (5 of 9) Reasons To Own Gold (7 of 9)

Reasons To Own Gold (6 of 9)

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Supply Constraints: Much of the supply of gold in the market since the 1990s has come from sales of gold bullion from the vaults of global central banks. This selling by global central banks slowed greatly in 2008. At the same time, production of new gold from mines has been on the decline since 2000. According to BullionVault.com, annual gold-mining output fell from 2,573 metric tons in 2000 to 2,444 metric tons in 2007. It can take from five to 10 years to bring a new mine into production. As a general rule, reduction in the supply of gold increases gold prices.
Source: http://www.investopedia.com/articles/basics/08/reasons-to-own-gold.asp; http://www.investinganswers.citymaker.com/Investing_Answers.html