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Sale Price On Gold Sparked Consumer Demand Says WGC Posted February 18th, 2014
Laguna Beach, CA, Feb 18 (Tangible Investments) - The gold price continued its advance on Monday, rising $5.52 or 0.42 percent to close at $1,323.80 an ounce, as the dollar hovered near six week lows and investors sought the safety of the yellow metal, on the heels of its best weekly gain in six months. Silver rose $0.06 or 0.28 percent to close at $21.78 an ounce.
The World Gold Council (WGC) reported on Tuesday that “consumer demand” for gold jewelry, small bars and coins climbed 21 percent in 2013, and reached an historic high of 3,863.5 tons. The dip in the gold price last year, acted as a "sale price" to eager investors and played a significant role in the increase in consumer demand, says Marcus Grubb, of the WGC. “It (the price decline) just meant gold’s attractions were more obvious and you could actually buy gold on sale, if you will,” said Grubb.
“In some of these Eastern markets, that meant you could now buy a finished jewelry piece for the price of underlying gold only a few weeks or a few months ago, because you basically got a 10 percent or 20 percent discount on the price.” Grubb added that there was pent up or “unsatisfied demand” for the precious metal in many nations and investors were buying on price dips. “Basically, the consumer was seeking to add to holdings of gold as a way of accumulating wealth – whether it’s in the form of jewelry or bars and coins,” said Grubb.
Meanwhile, sentiment in the U.S. towards gold has begun to thaw, according to UBS, “The sentiment barometer (1-10 range) has moved from an icy 1 or 2 in January to a relatively warmer 5 or sometimes 6.” And the reasons for this change says the bank, are many: “no expectations for a more aggressive Fed policy; potential for the removal of the 80/20 rule in India; light investor positioning; EM risks; gold's diversification with equities; persistent Chinese demand; constrained mine supply going forward; the need for tail risk hedging; and inflation or deflation risks.”
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments, owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. We hope you will share our site with your friends on Twitter and Facebook, but whatever you do, don't leave the site before claiming your Free Coin.
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