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Supply and Demand Fundamentals Drive Gold Rally

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Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

schiffgold.com / BY SAMUEL BRYAN / MARCH 16, 2016

Shaky economic news, negative interest rates, and stock market turmoil have helped drive the recent gold rally, but an even more fundamental principle underlies the yellow metal’s surge – simple supply and demand.

As a recent CNBC report put it:

Consumers are lapping up gold at a time supply is declining, helping underpin a rally in the precious metal.”

While China’s central bank continues to buy gold, adding another 0.6% to its holdings in February, the Chinese people are also pulling money out of stocks and investing it in gold, according to Padraig Seif, chief executive of Hong Kong-based trading firm, Finemetal Asia.

But it’s not just investors in traditional markets like China and India that are buying gold. According to the CNBC report, demand is surging in emerging markets as well:

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The post Supply and Demand Fundamentals Drive Gold Rally appeared first on Silver For The People.

Thanks to BrotherJohnF


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