Since the middle of April we have all heard the gold bear cry of ‘it’s over, gold is done with…the bubble has burst.’ But not many of these so-called expert commentators have really looked into the strength of demand in the East.
The U.S. Mint has sold 1,628,000 ounces of silver coins so far in June, according to figures on the Mint’s website. At that pace, total sales for the month would be 4,651,429 ounces, up 62.8% from a year earlier.
The recent drop in gold prices is a confirmation, or a revelation, to investors of the battle between the physical and paper gold markets. Here, Brien Lundin predicts the timing of a handoff from Asian physical demand to Western speculative demand.
Gold looks set to have a third week of higher closes and is heading for the longest run of weekly advances since March. Gold is up 1.6% in U.S. dollars and 2.3% in Australian dollars due to concerns about the outlook for both the U.S. and Australian economies.