It’s been a steady week for the gold price, which has hovered around the £850 per troy ounce mark as investors waited for the US Federal Reserve’s latest decision on whether to increase the cost of borrowing.
As had been widely expected, the US central bank decided to leave interest rates on hold when it met on Wednesday (27 April). As a result, the gold price rose to after the announcement and this morning at 08:00, gold was priced at £859.77per troy ounce.
The gold price has been stable for much of the week, although down on last week’s highs, as a result of worse than expected economic news from the US. Figures showed that orders for durable manufactured products did not improve as much as has been predicted and data in a separate report pointed to a slip in consumer confidence.
Concerns about the economy tend to bolster the value of gold as investors head to the precious metal as a safe haven for their cash.
Gold demand dips among dentists
The use of gold in the dental industry is falling, as patients seek whiter smiles, according to figures from the World Gold Council.
Whereas around 67 tonnes of the precious metal were being used by dentists worldwide a decade ago, the figure had slumped to around 19 tonnes during 2015. A combination of people’s desire for a Hollywood white smile and the high gold prices achieved during the recession are being blamed for the trend, which has seen demand for gold in dentistry fall by around 60 per cent since the start of the decade.
Lindsay Richards, dean of dentistry at the University of Adelaide in South Australia, told IOL: “We hardly ever use gold in front teeth now, almost never. I would’ve last done a gold filling 10 years ago in a front tooth. For the back teeth, it’s still an excellent material, but people don’t like the look of it.”
Rise in counterfeiting detected
Gold coin and bar buyers are being urged only to use reputable dealers after a rise in counterfeits coming on to the market.
The reports from the US suggest that much of the fake gold for investment is coming from China. Fraudsters have manufactured counterfeit coins, packaging and even certificates of authenticity. In some cases, ‘gold’ bars have been discovered to be made from tungsten and painted with gold leaf.
Writing in Newsmax, gold industry and coin expert, Mike Fuljenz said: “Whenever gold makes a positive move up, as it has done in the first quarter of 2016, we see ads from coin dealers sprouting up like weeds. Publications have little or no way to check-out advertisers. Their main criterion for reliability is whether their check for the ad’s payment clears the bank. Don’t be tricked by an ad on the Internet or on late-night TV.”
At the Gold Bullion Company, we’ve been trading for more than 20 years and have a reputation for trustworthiness in the industry. Dealing with an established supplier means you can be confident about the gold investments you make.
