Getting Physical
Posted by Investment Rarities on March 29th 2010 in China, General Economy, Gold, India, Silver | Be the first to comment!
“Demand for gold bars and gold coins is rising in major yellow metal consuming nations like China and India as investors are leaving the paper gold—exchange traded funds or Gold ETFs—for physical gold,” reports Commodity Online. The Golden Truth has more on eastern-markets demand, amid a prediction that “China could quite likely replace India as the largest physical market in 2010,” and a just-released report that China’s gold demand may double within the next decade.
Przemyslaw Radomski, charting gold’s performance relative to the U.S. dollar, notes that a rallying dollar has “caused gold to move lower, but its decline was relatively small. This is bullish for PMs in two ways. Firstly, it means that gold is once again becoming negatively correlated with the USD Index, which in the past meant that PMs are ready to move higher. Secondly, it suggests that the gold market is strong, as it has held up relatively well.”
