China Gold Mania – Coins, Bars and Jewelry Sales Surge 108%

Thursday, May 2, 2013
By Paul Martin

By Mark O’Byrne
GoldCore.com
May 2 2013

Gold fell $17.30 or 1.17% yesterday to $1,458.70/oz and silver slid to $23.24 and finished down 2.60%.

Gold remains under pressure despite very robust demand and anaemic supply globally.

This suggests that speculators in the futures market continue to hold the upper hand. While this may continue in the short term and lead to further short term weakness in the price, the long term supply demand fundamentals will almost certainly lead to higher prices. We continue to believe gold will surpass its real inflation adjusted high of $2,400/oz in the coming years.

The U.S. Federal Reserve’s decision to maintain its loose monetary policy will support gold as the Fed’s money-printing to buy assets will stoke inflation – it is not a question of if, rather when.

Gold will also be supported by the ultra loose monetary policies from the ECB and the Bank of England.

The Fed reiterated it would continue to buy $85 billion worth of bonds every single month to support the sickly and weakening US economy.

Stocks fell on the statement and gold tracked other markets lower despite renewed worries over the Chinese, Eurozone and U.S. economies after the latest economic data showed the real risk of a global recession or depression.

The Rest…HERE

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