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China Demand for Gold should help the price long term

Gold demand from central banks could help the price, specifically South American banks

Latest data from the US Mint showed a strong rise in sales of Gold Coins to retail dealers in late November.

Holdings in exchange-traded trust products, Gold ETFs rose globally to a new record high of 2,619.4 tons according to the data, proof that Gold remains in high demand as a store of value and a safe haven despite all the daily price fluctuations.

Investors expect investment demand to remain robust in China according to the latest monthly report from Standard Bank’s LN:STAN precious metals analysts in London.

The report says, “The reasons for the expected rise in gold investment demand in China are broad-based and, we believe, very similar to those in many other countries…substantial monetary stimulus and low or negative real interest rates.”

Marcus Grubb, director for investment at market-development organization the World Gold Council, said “There’s evidence already that the Chinese economy is bottoming out, and beginning to recover again. Gold will have strength into Q-1 next year on Chinese New Year.” Mr. Grubb added, forecasting a 10% rise in Y 2013 Gold demand from this year’s likely 800-ton total.

“I think you’ll see China perform strongly in Y 2013 as the economy recovers,” he said.

Interested in Investing in Asia? Hedge Funds, Real Estate, Trading

Linda Johnson,
Business Development Director – Private Client Group,
Heffernan Capital Management
Sales@Heffcap.com

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