Raleigh, NC -- (SBWIRE) -- 05/21/2012 -- The World Gold Council has released their latest buy and sell statistics for January and February, 2012. A total of 12 tons of gold have been bought and reported over the two months, with purchases from Belarus (buy of 3.7 tons), Kazakhstan (buy of 9.8 tons), and Turkey (buy of 2.8 tons), with sales from Russia (3.8 tons) and Mexico (0.2 tons), for example.

This compares to further net buy demand from the last six months of 2011, where Russia buy orders equaled 46.1 tons of gold. Buy orders from Turkey over that same time frame equaled 79.3 tons of gold. Even small nations like Thailand had net buy orders, picking up 24.9 tons of gold.

"Gold buy demand is continuing in the first two months of the year," mentions Peter Leeds, public speaker on topics about what penny stocks are, analyst in penny stocks, and publisher of the world famous Peter Leeds penny stocks to buy newsletter. "On top of last year's global buy demand for gold of over 4,000 net tons, many of the same nations have shown that they are still adding to their gold positions."

Leeds continues, "There is not a lot of gold above ground. If you took all the gold ever mined, and put it into one single cube, that cube would barely cover a tennis court. And of that 158,000 tons, only one fifth is in play, about 31,000 tons, being actively traded by central banks. Suddenly a purchase of 10 tons of gold from Kazakhstan becomes significant."

Leeds mentions that this is the first time in history that nations from all over the globe have started to buy gold, such as Malta, Ukraine, Belarus, Sri Lanka, an many others. He also states that this is the first time in over 20 years that European Unions have been net buyers, with the exception of Germany.

"We've long been expecting much higher gold prices, from years ago when you could buy gold for hundreds of dollars less per ounce. We still expect much higher levels for gold from here, and that is part of our analysis of the penny stocks we pick to buy, and our outlook for penny stocks in the gold production space."

Asked what will move gold prices higher besides the strong buy demand from global central banks, Leeds cites other factors:

1. People buy gold and gold penny stocks in times of uncertainty, and global economies have not been more uncertain in our lifetime

2. People buy gold and gold penny stocks as a hedge against inflation, and we expect a major global wave of inflation to appear very soon

3. Costs to buy gold increase as currencies suffer decreasing purchasing power

About the third point, Leeds explains that a basket of goods that cost $1,000 to buy in 1960 now costs $8,000. He says the purchasing power of the dollar has been falling, in lock step with further moves by American regulatory bodies to flood the system with new money and liquidity.

"Currently the American monetary supply is actually shrinking, not expanding, as so many would have you believe," states Leeds. "However, over the medium and longer term, more American dollars are in the system, and this causes the value of each to diminish. In the end, everything costs more to buy, from bikes to penny stocks to food to clothes. And of course, gold and precious metals."

Leeds and his team use their analysis to uncover penny stocks to buy. Many of his recent penny stocks to buy which he has profiled in his penny stocks newsletter are engaged in gold exploration and gold production. Neither Leeds nor any of his team members accept compensation in any form from the penny stocks they analyze and profile.

About Peter Leeds
Public speaker, author of Invest in Penny Stocks, and publisher of the world famous Peter Leeds penny stocks to buy newsletter. Along with a full penny stocks team, Leeds uncovers penny stocks to buy for subscribers of his penny stocks newsletter.

Subscribers benefit from full company reports, daily updates, and buy and sell price opinions on all penny stocks.

The newsletter focuses on gold exploration penny stocks, gold production penny stocks, technology penny stocks, pharma penny stocks, and selections from any industry within which Leeds and his team uncover buy opportunities.