Gold
price is on fire. It looks like something big has happened in the gold market.
There was a magnificent change of trend in the gold prices from the mainstream
during the first quarter of 2016. This shows that the investors are having
insecurity about stock market and they are finding a way towards safe
investment somewhere else… gold market may be…
Over
the past several years gold market the gold market has been agonized by the
decline in the outflow of gold from Gold ETF’s and Funds. This decline in the
new outflows brought a drastic change in the international gold market in first
quarter of the year.
According
to Gold Demand Trends of World Gold Council the entire gold market suffered the
net outflows from Gold ETF’s and such similar funds except for the small
outflow of 25 metric ton that was built during first quarter of 2015. In the
first quarter of 2016, this out flow was built up to 363 metric tons which is
actually recorded to be the second highest build in the history of Gold ETF’s
and Funds.
The
first highest metal inventory was built at Global Gold ETF’s and Fund in first
quarter of 2009. This was the time when stock markets were crashing down at
their lowest levels. AT that time, the Global Gold ETF’s and Fund inventories
rushed at 465 metric ton which was the highest ever.
There
three important factors that act as driving force for bringing major change in
gold markets are:
- Net Sales and Purchases by Central Bank
- Demand of gold coins and bars
- Gold ETF’s and Fund Flows
When
the Central Banks in West dumped 663 metric tons of gold in the market by the
year 2005, the result was decline in the demand of total gold investment that
reached 58 metric ton. This can be compared to the situation of gold investment
demand of the year 2012 when it reached 2174 metric ton. This was an outrageous
swing in the investment demand of gold with the difference of 2232 metric tons
from 2005 to 2012. This catalyzed the prices of gold to hit as high as $ 1669
in Q1 of 2016.
In
current situation, the investors need to realize that the popping up of wide Bonds
and Stocks markets by Fed and other central banks won’t last forever. There
might even be the possibility that Gold ETF’s and Fund Flows won’t even be
having the gold that has been declared on records. The evidence of this is massive
investments in paper gold. The investor only invests in the certificate and never
gets to have gold in physical form. Most of the demand of gold investment is
fulfilled this way. What investors really need to know is that if the flow of
the mainstream investors would sign of things to come in future the things are
really going to take new twists and turns by the year 2017.
Impressive
ReplyDeleteUsing BullionVault you can acquire physical gold & silver by the gram at current market exchange rates.
ReplyDeleteYour gold and silver is stored at one of 5 secured international vaults. And you may exchange it online or take away physical bars.