It has certainly been a golden year for gold as physical gold demand hit the highest level on record!
August 7 (King World News) – Gerald Celente: Worldwide gold purchases totaled 1,258 tons in this year’s second quarter, 4 percent more than a year earlier and the most in any three-month period since 2000 when the World Gold Council (WGC) began tracking sales.
Of the sales, 329 tons went to unnamed private purchasers. Much of gold’s recent ascent has been due to massive purchases by central banks.
Gold’s price has set a series of records in recent weeks on growing expectations of central bank interest-rate cuts in coming weeks.
Lower interest rates would reduce bond yields, prompting investors to look for assets that hold their value over time, especially in the face of uncertainty over the results of the U.S. presidential election in November…
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“I couldn’t explain why gold was high,” John Reade, WGC’s chief strategist, said to the Financial Times. He found anecdotal evidence that wealthy families worried about runaway deficits in U.S. federal budgets had entered the market.
“I was looking for the missing buyer, who might be people buying because of renewed or accelerating fears over U.S. debt,” he added.
The U.S. national debt will reach 106 percent of GDP in 2029, according to the Congressional Budget Office, surpassing its previous high mark set during World War Two.
Wealthy Asians in Hong Kong and Singapore also scooped up bullion, as did rich Turks as they watched the value of their country’s lira plummet, Reade noted.
Exchange-traded funds focused on gold recorded five consecutive weeks of net cash inflows during June and July after two years of steady outflows, “a sign that Western investors are buying into the rally,” the FTsaid.
TREND FORECAST:
The equation is simple; the more the U.S. Fed lowers interest rates, the deeper the dollar will fall. And since gold is dollar based, the deeper the dollar falls, the less expensive it is for nations—whose currency values went up as the dollar went down—to buy gold.
Nomi Prins Says Gold Price Will Continue To Soar
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