A recent quarterly report by the World Gold Council (WGC) has shown an increase in demand for the yellow metal across the board. Although specifics were not given as to what emerging economies have decided to protect the growth they have gotten recently by adding gold to thier reserves, it is evident that central banks are buyers of the “ancient relic”.
The buying started after the correction gold had from a high $1,920 mid day trading, down to just under $1,600 mid day trading back in August of this year.
Today the metals seem to be pulling back, silver with the most volatility, which is sitting at around a 6% drop for the day in the $31.70 range, gold down slightly taking a near 2.5% drop but staying above $1,700 and platinum remaining cheaper than gold at $1,589.00.
Things are only getting worse throughout the worlds financial system. Keep that in mind if you are unsure about purchasing metals because of the drop. Anytime someone get’s in trouble, 90% of the time they will run home to Mom and Dad if that option is there, and that is what everyone seems to be doing at the moment by running back to cash, or US$. But when reality hits and Mom and Dad can no longer bail you out, it’s time to grow up and figure out how the world works…throughout history the world has worked off of a hard currency backed by gold.
Traders and fund managers seem to be going to cash as the uncertainty grows across the pond in Europe and the US announces a new toy that makes a bigger explosion than the toy that it is replacing. (U.S. Announces New Bunker Bomb For The B-2)