Gold, Silver and Oil started a rally yesterday following the movement of Iranian warships into the Suez canal. Any further conflict in the area is likely to drive up all three commodities.
Surging Gold Demand a "Global Phenomenon".
The World Gold Council reports that the increase in investment demand is a 'global phenomenon', reporting a 19% year-on-year rise across the world in its most recent report this morning. In China alone, gold investment demand jumped 70% last year as Chinese people bought gold as a store of value.
Demand is projected to grow a further 40 percent to 50 percent this year and jewelry demand will expand by 8 percent to 10 percent this year.
Gold imports by India, the largest buyer of gold in the world, climbed to a record of 918 metric tonnes in 2010, driven by a surge in jewelry demand with Indians continuing to buy jewelry as a store of value.
Given the degree of demand for silver in China and internationally the forecast that silver could reach $36 an ounce this year, by Bloomberg analysts, is looking very conservative.
Those continuing to call gold and silver "bubbles" continue to ignore the facts and the many, many extremely important developments in the gold and silver bullion markets.
Gold is now trading well above the 150 Day moving average after it hit what we estimate to be a bottom last week.
China gold demand growing at "explosive" pace: ICBC
Demand in China for physical gold and gold-related investments is growing at an "explosive" pace and its appetite for the yellow metal is poised to remain robust amid inflation concerns, said an Industrial and Commercial Bank of China (ICBC) executive.
ICBC (1398.HK)(601398.SS), the world's largest bank by market value, sold about 7 tonnes of physical gold in January this year, nearly half the 15 tonnes of bullion sold in the whole of 2010, said Zhou Ming, deputy head of the bank's precious metals department on Wednesday.
"We are seeing explosive demand for gold. As Chinese get wealthy, they look to diversify their investments and gold stands out as a good hedge against inflation," Zhou told Reuters.
"Unlike the property market, investment in the gold sector is something the government is encouraging," Zhou said.
Zhou said there was also voracious demand for silver, with ICBC bank alone selling about 13 tonnes of physical silver in January alone, compared with 33 tonnes in the whole of 2010. Were that demand to continue then demand for silver from ICBC alone could be as high as 156 tonnes this year. This would be a 370% increase on 2010.
The Chinese Government are currently promoting Physical Gold & Silver to their citizens just like they did this time last year. None of the fundamentals have changed, if anything they have gotten better.
I strongly advise you to take possession of real gold and silver, at anywhere near today's price, while you still can.
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How is your pension performing these days ? Why not self administer it ? An option available to Pension holders who are Self Employed or company directors.
In this scenario you could invest your pension in stocks and shares of your choice in your own brokerage account. I can advise on self administering your pension and which stocks to buy and sell.
Happy Investing,
Robert McManus
The Abundance Engineer
Email: rob@theabundanceengineer.com
Web: www.theabundanceengineer.com
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