Big Gold Buying Coming 2017

Gold has hit the ground running in this young new year, a stark contrast to its brutal post-election selloff.  Rather remarkably, these strong recent gains accrued despite literally zero buying from one of gold’s most-important constituencies.  The American stock investors who almost single-handedly fueled gold’s strong bull market last year are still missing in action since the election.  That means big gold buying is still coming. All free-market prices, including gold’s, ultimately result from the balance between popular supply and demand.  When supply outweighs demand as evidenced by investment-capital outflows, gold is forced lower.  That’s exactly what happened after Trump’s surprise win in early November.  When investors flee gold for any reason, including chasing record-high stock markets, the resulting oversupply really hits prices.

First published here: Big Gold Buying Coming 2017

No comments:

Post a Comment