Mike O'Kane reviews the gold market in January. He eyes a central bank gold sales slump and a slide in Indian jewellery demand
NZ Mint Head of Bullion Mike O'Kane reviews the market for gold and silver in January in this Double Shot interview above..
He looks at the slide in the price of gold through late January as global markets became more relaxed, at least until the advent of the Egyptian riots in the final days of January.
O'Kane talks about the slide in gold stockpile sales by the world's central banks over the last year as bankers hoard their gold in the wake of money printing by the US Federal Reserve and European central banks.
He points to a slide in demand for jewellery from Indian buyers after the rise in the gold price over the last year.
Second hand gold sales are however expected to dry up in the year ahead as easy supplies of surplus jewellry dry up.
South African gold supplies are also being restricted by infrastructure problems, O'Kane says.
He also looks at the relationship between gold and silver prices. He downplays suggestions of a much faster rise in the silver price than the gold price.
Your view?
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6 Comments
The ongoing recession scenario - the suffering of worldwide economies and stress of the population, provokes more political tension also. Next to other regions, especially the Middle- East is sitting on a volcano – just waiting to explode. The world is on many fronts in serious trouble -under such developments gold will reach US$ 2’000.- + in the next coming months - I think.
We have had gold for a few years, bought it at $US880. I have seen a few articles in The Economist etc, suggesting that gold may have had its boom & be due for a bust. However they, along with most conventional economists, seem to think that the the world economy is going to settle down & plod along in a stable fashion, meaning the point for owning gold will go away. I ain't so sure, so will hang on. In a nutshell, I don't think the various imbalances have gone away, so expect another jolt not too far away.
Cheers to all.
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