The demand and supply situation of gold bullion is clearly going in favor of the bulls,

Gold bullion prices are no stranger to price declines.

I have said it many times: central banks will be the major drivers of gold bullion prices going forward.

The old adage has it that the market usually goes against what the majority expect, and right now the majority think gold bullion prices are headed lower.

At the center of the 'gold story' - demand by the countries that are known to be the biggest consumers of the precious metal keeps climbing.

The gold bullion price chart below shows the long-term trend in gold bullion is still intact. Since 2001, the precious metal’s price has marched higher.

The gold bullion price chart below shows the long-term trend in gold bullion is still intact. Since 2001, the precious metal’s price has marched higher.

Why have central banks been continuously buying more gold? My speculation is that they realize the fiat currency will eventually be problematic, with so much of it being created out of thin air these days.

Getting into gold-related investments when the metal fell to $1,200 an ounce will one day be looked upon as the smartest buying opportunity of this decade.

Inflation in the U.S. economy is already much higher than what the official numbers tell us.

Silver prices will see an uptick because of the most basic of economic reasons—demand will outstrip supply.

The prospects for gold remain very strong in spite of the price decline.