According to World Gold Council, central bank gold and silver purchases in the third quarter of this year more than doubled the second quarter and were almost seven times higher than a year before Precious metal producers claim it is far more costly to get out of the ground, but the gold price continues to slip lower.
Standard Chartered, another precious metals group released results of a survey from last year of more than 300 producers. In that survey it was determined that future supply of gold would fall well short of levels previously anticipated.
These facts alone should be enough to drive gold and silver prices higher, but if you've paid attention to the markets lately, that is not happening. Instead, it appears the price is headed lower. Using a supply and demand philosophy, something doesn't seem to add up. Or does it?
How do we explain the recent movements on the price of gold?
If you look at today's spot gold price of $1691 an ounce, which still represents a 20% gain for the year. Silver is in the same ballpark give or take a percentage points. Most stocks and equities, on the other hand, are negative for the year. This could be a fairly solid understanding of why gold is selling off. It's one of very few assets today that can be sold for a profit. Selling an amount of gold or silver to offset a loss in stocks or equities could make sense.
By no means is this the only reason why people are selling off precious metals. Whatever reasons do exist for selling, the reasons for owning should be equally as strong, perhaps even more so. Central banks aren't buying tonnes of gold and silver because they think the price is going down. It's a currency play and a safe haven move.
If you are one of the few that is fortunate enough to have money to invest, now may be the last best chance you have to add some gold or silver to your savings and investment accounts.
When it comes to buying, selling and recycling precious metals, Vancouver Gold is fast becoming Canada's trusted authority. Vancouver Gold is leading the way by providing a solid tradition of ethical practices, information and education as well as unparalleled service to each and every customer and client.
Vancouver Gold is a locally owned and operated business, dedicated to the highest level of integrity and client satisfaction. The payout rates for gold, silver and platinum items are by far the highest in the industry.
Standard Chartered, another precious metals group released results of a survey from last year of more than 300 producers. In that survey it was determined that future supply of gold would fall well short of levels previously anticipated.
These facts alone should be enough to drive gold and silver prices higher, but if you've paid attention to the markets lately, that is not happening. Instead, it appears the price is headed lower. Using a supply and demand philosophy, something doesn't seem to add up. Or does it?
How do we explain the recent movements on the price of gold?
If you look at today's spot gold price of $1691 an ounce, which still represents a 20% gain for the year. Silver is in the same ballpark give or take a percentage points. Most stocks and equities, on the other hand, are negative for the year. This could be a fairly solid understanding of why gold is selling off. It's one of very few assets today that can be sold for a profit. Selling an amount of gold or silver to offset a loss in stocks or equities could make sense.
By no means is this the only reason why people are selling off precious metals. Whatever reasons do exist for selling, the reasons for owning should be equally as strong, perhaps even more so. Central banks aren't buying tonnes of gold and silver because they think the price is going down. It's a currency play and a safe haven move.
If you are one of the few that is fortunate enough to have money to invest, now may be the last best chance you have to add some gold or silver to your savings and investment accounts.
When it comes to buying, selling and recycling precious metals, Vancouver Gold is fast becoming Canada's trusted authority. Vancouver Gold is leading the way by providing a solid tradition of ethical practices, information and education as well as unparalleled service to each and every customer and client.
Vancouver Gold is a locally owned and operated business, dedicated to the highest level of integrity and client satisfaction. The payout rates for gold, silver and platinum items are by far the highest in the industry.
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