Friday, June 6, 2014
There are a number of things making it more positive for gold investors.
Restrictions on gold imports into India have been lifted, the world’s second largest importer.
The restrictions imposed by the Indian Government backfired and created a boom in illegal gold smuggling.
The global demand for jewellery climbed in the past 3 months of this year boosted by a 30% year on year increase in China.
China is the top producer, importer and consumer of the much desired yellow metal.
It is expected that gold demand will climb by 20% over the next 4 years as the Chinese get richer.
The gold and silver market has seen a flat trading range and will probably continue through the summer as this is traditionally a quiet time while the big traders are off on their holidays.
The news that a banker was rigging the gold price comes as no surprise to The Gold Multi-Trust Action Committee formed in 1998 in the United States of America. They argue that the gold price has been suppressed for decades by global governments in collusion with banks. The basic argument is that gold is a powerful international currency that – if allowed to trade freely would determine the value of other currencies, government bonds and the level of interest rates.
As a result central banks suppress gold to prop up the confidence in their currencies and bonds.