Gold Bullion YTD: Demand for Gold Bars in UK Spikes 39% on Brexit Anxiety

Gold Bullion YTD: Demand for Gold Bars in UK Spikes 39% on Brexit Anxiety

Gold Bullion YTD: Demand for Gold Bars in UK Spikes 39% on Brexit Anxiety

$GLD, $EXCFF, $SLW

As the UK triggered its formal departure from the European Union, gold demand from UK investors remained ongoing and robust with increased numbers of British investors diversifying into physical gold in order to hedge the considerable uncertainty and volatility that the coming months and years will bring.

Already, demand for Gold bars by UK investors rose 39% in Y 2016 according to GFMS as reported by the WS-J: “Macroeconomic fears are conducive to increased investment demand in Gold,” Mr. Strachan of GFMS said. During and after the global financial crisis, he pointed out, global Gold Bar investment increased from 237.7 tonnes in Y 2007 to 1246.9 tonnes in Y 2011.

Given the scale of the uncertainty, robust Gold demand in the UK, US and the world should continue.

Indeed, given the fact that cohesion of the EU single currency bloc is being tested and there is the risk of contagion, Gold demand in the EU should also remain robust.

Notably, Ireland and the Irish economy is particularly vulnerable.

In sterling terms, the GBP has fallen against Gold and Gold in sterling terms is back above the important psych mark of £1,000 oz.

The SPDR Gold Trust ETF (NYSEArca:GLD) has gained 8.87% YTD Vs a 5.37% gainers in the benchmark S&P 500 index during the same frame.  (ETF DN).

Notably, there is a problem in the Gold mining business, and even the biggest mining companies cannot escape it.

The more Gold they mine, the closer they are to running out. The major beneficiaries of this demand/supply/price action are the precious metals royalty and streaming companies like Silver Wheaton (NYSE:SLW) and Metalla (C.MTA, OTCMKT:EXCFF).

Symbol Last Trade Date Change Open High Low Volume
NYSEArca:GLD 118.72 Mar-31-2017 0.25 118.61 119.08 118.46 8,520,800
HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Neutral (0.15) Neutral (0.05) Neutral (0.19) Neutral (0.22)
Symbol Last Trade Date Change Open High Low Volume
NYSE:SLW 20.84 31 March 2017 0.53 20.34 21.16 20.22 4,090,700
HeffX-LTN Analysis for SLW: Overall Short Intermediate Long
Neutral (0.12) Neutral (0.14) Bullish (0.29) Neutral (-0.07)
Symbol Last Trade Date Change Open High Low Volume
OTCMKT:EXCFF 0.35 Mar-31-2017 0.00 0.3595 0.3595 0.35 2,500
HeffX-LTN Analysis for EXCFF: Overall Short Intermediate Long
Neutral (0.06) Bearish (-0.29) Neutral (0.10) Bullish (0.37)

Have a terrific weekend.

 

 

 

 

 

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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