Some Bright Spots in the Gold Market
With all of the negative stories flooding the mainstream media about Gold’s price collapse and impeding doom, there are a few bright spots in the market. When taking a closer look at the global Gold market you will find that Gold is performing well in certain currencies. For example:
- The Australian Dollar: the Gold price in Australian Dollars is about $1,499. Gold has gained over 7% in the last year when priced in Australian Dollars. (Source: goldprice.org)
- The New Zealand Dollar: the Gold price in New Zealand Dollars is about $1,651. Gold has increased over 8% in the last year when priced in New Zealand Dollars. (Source: goldprice.org)
The currencies of Canada, New Zealand and Australia are all falling. Which means that purchasing power in these currencies is declining. According to Casey Research, the Canadian Dollar is at its lowest level versus the US Dollar since 2004. The Australian and New Zealand Dollars are at six year lows versus the US Dollar. (Source:Casey Research 2015 July 24th)
While these increases in Gold are nothing to get too excited about, consider that these gains are taking place with Gold in a deep bear market loosing almost half its value since 2011.
Gold is proving to be an effective store of value in these currencies. The Australian Dollar has fallen over 20% in the last year. Those who have saved in Gold are showing a gain of 7% versus a decline in the paper currency of over 20%.
This is also the reason why physical Gold make sense. As long as Central Banks continue to print money and lower interest rates, currencies will be worth less.
Update on Gold Demand
In an article in ZeroHedge, According to the US Mint, so far in July the mint has sold 143,000 ounces of Physical Gold, the most in over two years. (Source: ZeroHedge 2015 July 24th) According to an article in NewsMax, the U.S. Mint said last week that there was a 253% rise in demand for American Gold Eagle coins in June vs. May. (Source: Newsmax July 25th)
The same article reports that American Silver Eagle sales surpassed 4.8 million ounces in June, more than doubling May’s total. In the first week of July, 2.6 million ounces were sold.
Despite what the main stream media would have you believe, the Gold and Silver market is strong. Millions of people around the world understand that physical Gold and Silver are one of the best forms of long term savings.
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