Thursday, May 12, 2016

Gold demand for first quarter of 2016 is the highest on record

As the numbers come in for the gold industry in the first quarter of 2016, demand for the precious metal, both in physical purchases and paper equities is the highest total amount on record.  And with institutions such as J.P. Morgan publicly calling a new bull market in full swing, chances are likely that not only the second quarter, but the rest of the year, will see massive inflows of buyers into the gold markets.

Demand for gold soared at the start of the year, the strongest first quarter on record, the World Gold Council (WGC) has said. It predicted that negative interest rates, global uncertainty and a good monsoon season in India would bolster buying further in coming months. 
Demand surged 21% between January and March, as negative interest rates in Japan and Europe, which have led to rock-bottom savings rates, slower global growth and stock market turbulence drove investors to bullion, seen as the ultimate safe haven
The WGC’s report [pdf] noted that China’s devaluation of the yuan had fuelled fears over the country’s economic health and the impact on the global economy, and that the pace of US interest rate rises was widely expected to slow. - The Guardian


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