Silver hit its highest since 2013, above $30 an ounce, and gold pushed above $2,4000 per ounce.
For gold and silver investors in the West, the uncertainty regarding the FOMC’s next moves is dampening prices somewhat, but they do remain in a solid uptrend. We continue to see a divergence between gold demand drivers between the East and West. In the West central bank decisions and economic data remain at the forefront of buyers’ minds, but in the East this is now a secondary factor. Instead, central banks, institutions and consumers East of Germany are focused on gold accumulation, even buying into the price surge last month.
The release of the World Gold Council’s Q1 demand trends report has confirmed this. Data for the first quarter of this year showed the PBoC’s gold purchases continued for a 17th month in a row, whilst gold bar and coin demand was also driven by China.
So where does this leave the West? In today’s video, Jan Skoyles wonders if it leaves them with ‘no plan B’. Do you agree? We’ve been chatting to a few clients recently and it has been interesting to hear thoughts on future gold market trends and what is driving people to increase their gold allocation. Let us know yours, either by replying to this email or in the comments below the video.
Why is China buying up so much gold and what does it mean for the gold price? We take a look in this week’s latest video.
Continuing with our gold education series, Jan Skoyles looks at the seven reasons why gold is a good investment, and looks at the difference between buying bars and coins.
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