{"id":14013,"date":"2013-05-08T11:55:54","date_gmt":"2013-05-08T18:55:54","guid":{"rendered":"http:\/\/www.itmtrading.com\/?p=14013"},"modified":"2013-05-13T16:00:43","modified_gmt":"2013-05-13T23:00:43","slug":"the-physical-demand-for-gold","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/the-physical-demand-for-gold\/","title":{"rendered":"The Physical Demand For Gold"},"content":{"rendered":"

As a result of the almost 8% decline in the price of Gold<\/strong> many dealers were surprised to see the demand for gold<\/a> jump with clients buying up coins and bars and appearing in unexpected numbers like cicadas on the East Coast.<\/p>\n

Some dealers have likened the appetite for the yellow metal as the most compelling it has been since the Lehman Brothers failure in 2008, and in a few particulars, the most noteworthy on record.<\/p>\n

\u00e2\u20ac\u0153We feel the bull market<\/a> is very much intact even if there\u00e2\u20ac\u2122s a lot of uncertainty at the moment for investors,\u00e2\u20ac\u009d Marcus Grubb, managing director of investment at the World Gold Council, remarked. \u00e2\u20ac\u0153There\u00e2\u20ac\u2122s some switching into equities in the United States going on \u00e2\u20ac\u201c this has affected gold to some degree – but we don\u00e2\u20ac\u2122t believe you\u00e2\u20ac\u2122re seeing this great rotation as it\u00e2\u20ac\u2122s called.\u00e2\u20ac\u009d<\/p>\n

The \u00e2\u20ac\u0153great rotation\u00e2\u20ac\u009d is a term that came out of Bank of America Merrill Lynch and refers to the common belief that record-low bond yields would persuade investors to rotate out of bonds and into stocks during 2013.<\/p>\n

Grubb maintains that gold\u00e2\u20ac\u2122s drop was caused by a very big short sale in the futures market in New York, and what we\u00e2\u20ac\u2122re seeing is a recovery as physical demand rallies. He references India and China where gold customers are paying a premium for physical gold.<\/p>\n

\u00e2\u20ac\u0153In nearly 30 years of business at Dillon Gage, this is the busiest we have ever been in terms of physical demand for gold and silver,\u00e2\u20ac\u009d observed Terry Hanlon, president of Dillon Gage Metals, one of the more substantial international precious-metals dealers based in Texas \u00e2\u20ac\u0153The recent correction brought more buyers than sellers into the market.\u00e2\u20ac\u009d<\/p>\n

\u00e2\u20ac\u0153The massive wave of buying we\u00e2\u20ac\u2122re seeing has reminded market participants from New York to Beijing that demand for gold bars, coins and jewelry is supportive of the long-term trend for gold,\u00e2\u20ac\u009d stated David Schraeder, a spokesperson for the World Gold Council.<\/p>\n

\u00e2\u20ac\u0153We are seeing nearly all buyers and little or no sellers, which is making for a tight market with rising premiums,\u00e2\u20ac\u009d said Mark O\u00e2\u20ac\u2122Byrne, executive director of GoldCore. \u00e2\u20ac\u0153Most physical owners are buying for the long term and will not sell in the coming months even when prices recover.\u00e2\u20ac\u009d<\/p>\n

All of this indicates that we are still witnessing the greatest gold bull market the world has ever seen and serves to contrast the difference between digital gold and the physical demand for gold.<\/p>\n","protected":false},"excerpt":{"rendered":"

As a result of the almost 8% decline in the price of Gold many dealers were surprised to see the demand […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[59,63,98],"class_list":["post-14013","post","type-post","status-publish","format-standard","hentry","category-blog","tag-gold-2","tag-gold-coins","tag-physical-gold"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/14013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=14013"}],"version-history":[{"count":3,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/14013\/revisions"}],"predecessor-version":[{"id":14065,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/14013\/revisions\/14065"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=14013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=14013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=14013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}