It appears that despite record prices, demand for gold is still climbing.
Despite Record Prices, Demand For Gold Is Still Climbing
August 6 (King World News) – Gerald Celente: Geopolitical strife, trade war turmoil, and the U.S. dollar’s loss of cachet as a safe haven keeps investors clamoring for gold despite the metal’s recent series of record-high prices.
In this year’s second quarter, demand rose 3 percent, year on year, during a time when gold’s price touched $3,500 for the first time in history, the World Gold Council (WGC) reported. Inflows to gold-focused exchange-traded funds during this year’s first half was the strongest since 2020.
Overall demand for gold—as jewelry, bullion, coins, and investment vehicles—has rocketed up 78 percent so far this year compared to this time in 2024, according to the WGC.
The metal also has surpassed the euro as the second most important asset in central banks’ reserves, the European Central Bank said in June. Central banks continued buying gold in the second quarter, although at a slower pace than previously.
“I don’t see reasons why central banks would stop buying,” metals trader Philip Diehl at U.S. Money Reserve said to the FT. He believes gold fever will “spread to more central banks” because it is “inevitable” that central banks will want gold as a hedge against the dollar’s decline.
“To be bearish on gold, you have to think we’ll get an outbreak of sanity and cooperation from major political leaders,” John Reade, the WGC’s senior strategist, told the Financial Times. “The world seems too polarized for that.”
TREND FORECAST: As Trends Journal subscribers well know, we have been very bullish on gold. As we go to press, gold is selling at $3,380 per ounce… down about $120 from its high this year, but still up some 28 percent for the year. And last year we had forecast that 2024 would be A Golden Year for Gold, and gold prices shut up some 27 percent that year.
And as the U.S. economy continues to go down, gold prices will continue to go higher. Why? Because the Federal Reserve will lower interest rates, and the lower interest rates fall, the deeper the dollar falls. And the deeper the dollar falls, the higher gold prices will rise. Gold is dollar based, therefore it is cheaper to buy from nations whose currencies are rising against the dollar.
Gold, Silver And Mining Stocks!
To listen to James Turk discuss the possibility of the gold price reaching $51,000 as the Fear Index surges to Great Depression highs CLICK HERE OR ON THE IMAGE BELOW.
Gold & Silver!
To listen to Alasdair Macleod discuss the wild trading in global markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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