Why does the quotation of the gold fall down while the demand keeps on being very high?
18-10-2008 golden marketAn article with the particular conference of Jeff Nichols (American Precious Metals Advisors) on the golden market.
Nichols says that it has weighed very much that the Central Bank of Europe has sold approximately 7,6 tons of gold in the week until October 10, 2008. He tells that the fall of the quotation of the gold of last week has not been provoked by the physical sales, but rather by means of deals of contracts of leasing (gold loans) on the part of the central banks. The above mentioned is an alternative way - and invisible - of injecting liquidity into the bank sector.
The same way it is not necessary to forget of the ETFs (Exchange Traded Funds = negotiable funds on the market) that - this week - they have been assured by approximately 770 tons in the SPDR Gold Shares of the NYSE.
Nichols affirms that they are already not only golden buyers the habitual ones “gold bugs”, but regular investors and thifty persons of all kinds.
Definitely there are no Traders in search of rapid profit, but they are the people scared in search of protection of his well-being.
This is the explanation to the current historical demand for the golden coins, like for example the U.S. Eagle and the Buffalo, Canadian Maple Leaf, the Philharmonic orchestra of Vienna, and the Krugerrand.
Similar demand by golden coins has not been seen for 30 years!
And it is exactly for the above mentioned high piece of news a demand that the ingots manufacturers are bringing share-out times more lengths for the delivery of the golden ingots.
The recent economic information of the industrialized countries indicates that we have already entered a deep and lasting recession, or even worse, that a big depression waits for us.
It is for all this that Nichols keeps on betting for the gold …, because the only global answer of the governments against the financial crisis is based in injecting money and printing tickets …
… yiendo straight to the inflation / hyperinflation, and the best way approved one himself is protected is to shelter in the gold.
Article in English of
MineWeb:
Why the fall in the gold price when physical gold remains in huge demand?
(translated by PrecioOro)
18-10-2008
