Gold Skyrockets in Q2 - Named Best-Performing Major Asset Says Capital Gold Group CEO

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Jul 06, 2010, 08:13 ET

LOS ANGELES, July 6 /PRNewswire/ -- "Gold was named the best-performing major asset of the second quarter after recording a 12% increase," stated Capital Gold Group CEO, Jonathan Rose, RFC. "As Americans begin to understand the impact of inflation and unsustainable debt both here and abroad, they're converting their low-yielding, long-term funds into gold for protection."

Driven by quantitative easing and Europe's debt crisis, increased money supplies have weakened not only the U.S. dollar, but also the euro and British pound. Year-to-date figures for gold increases are 13% in the U.S. dollar, 19% in the British pound, and 24% in the euro.

"Our clients are the vigilantly watching what's happening globally – central bank buying, the bond ratings of various European countries being downgraded, gold production decreasing and physical gold demand increasing. These reasons and more are all contributing to the repeated record highs we've seen in gold over the last 18 months," Rose said.

In 2009, foreign central banks were net buyers of gold for the first time since 1997. India, China, and Russia have been the biggest buyers according to the data released by the World Gold Council on Thursday, each hoping to decrease their risk by diversifying their reserve assets beyond paper currencies. After the U.S. dollar and the euro, gold is the most popular reserve currency.

In addition to the sovereign debt crisis, an almost 1500 point loss in the DOW in the last two months is driving a record number of investors to Capital Gold Group, Inc., one of American's leading providers of physical gold and other precious metals for both direct delivery and in Precious Metals IRAs.

However, with gold prices rallying 13% so far in 2010, traders, under pressure to book profits for the first half of 2010, sold off gold positions creating a buying opportunity for new investors as we headed into the Independence Day weekend.

Capital Gold Group, Inc. is headquartered in Woodland Hills, California, and can be reached at 800-510-9594. For more information online, visit their website, www.StartWithGold.com.

www.TheCapitalGoldGroup.com

SOURCE Capital Gold Group, Inc.