Gold And Silver Coin And Bar Shortages Globally
Monday, 29 April 2013
The slight rebound in prices from multi-year lows has as of yet failed to dampen the global appetite for bullion, causing a shortage in the physical supply of gold coins and bars.
Recent bleak U.S., European and Chinese growth data is also supporting gold due to concerns of recessions and of a global depression.
Central banks including the Federal Reserve and the ECB are set to continue with ultra loose monetary policies which will support gold.
The ECB has kept its main interest rate at a record low of 0.75% since July 2012 and may reduce interest rates to 0.5%, either this week or in June. This will further deepen negative real interest rates in most countries in the Eurozone.
The Fed alone is set to keep interest rates near 0% and continue its current pace of bond buying at a whopping $85 billion a month.
Ultra loose monetary policies will support gold as it is a hedge against currency devaluations and inflation and stagflation – all of which are real risks.