Some news sites are declaring that the surge to own physical, following the fall in the gold price in April, has slowed to a halt after the sales of American Eagles have disappointed so far for August.
The WGC commented on the possibility that China may beat India as top gold buyer. In the second quarter India bought 310 tons compared to China’s 294.6 tons, interesting to note given the additional import charges facing Indian buyers.
The price of gold bullion retreated from an overnight rise to $1,340 per ounce in London on Friday morning, trading back down to $1,322 – the low hit by the mid-April crash – as the U.S. dollar ticked higher.
The gold price, as many acknowledge, is open to manipulation. In China, the country set to overtake India as the world’s largest consumer of gold, jeweler Chow Tai Fook (amongst others) is being probed for price manipulation and collusion.
Over the last few years, during the great investment demand for gold and silver, we have seen sporadic shortages in bullion coins. One of the fads is to decry supply issues in silver and now recently gold. However, the truth of the matter is less dramatic, if not quite so simple.