Perth Mint Works Through Weekend as Gold Demand Surges on Price
It would seem that the drop in the price of gold was only a temporary occurrence, and investors are looking for a return to higher levels. Also, the demand for gold is on a global scale, even from the U.S. Orders were so high over the weekend, “the highest level in five years after prices plunged,” that the U.S. Mint had to suspend sales. Ron Currie, sales and marketing director of Perth, said that sales in April tripled in comparison to that of March.
Billionaire John Paulson has been an advocate of gold, maintaining a bullish stance on the market. He expects “central-bank buying and demand in Asia will support the metal in the near term.” “Central banks will buy as much as 550 tons this year after boosting holdings by 534.6 tons last year, the most since 1964, the World Gold Council estimates.”
If there is a bubble in gold, it isn’t going to be popping anytime soon. Investor demand is clearly still present, and the drop in price must have been a temporary sell off. The devaluation of money is definitely a strong motivator to invest in gold. I think that the sell off may have resulted from talks about the Fed tapering off their policy by the end of the year, but since it has reaffirmed continued economic stimulus, confidence in gold must be rising.