Global gold demand slumped to its lowest level in five years in 2014 as bar and coin buying plunged and jewelry purchases cooled, according to the World Gold Council (WGC).
Overall demand totaled 3,924 tonnes, down 4 percent on year at itslowest level since 2009, the WGC's quarterly demand trends report, published on Thursday, showed.
Total bar and coin investment fell 40 percent to 1,064 tonnes as investors, who had made major purchases in 2013 amid a sharp fall in prices, held back from further purchases, the industry group said.
In China, where demand for gold bars and coins halved, "investors, with already-stuffed coffers, needed a strong price signal to add to their holdings. But none was forthcoming. Meanwhile, the recovery in the domestic equity market – particularly in the latter half of the year – provided investors with an increasingly appealing alternative," WGC said.
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No one ever addresses the only thing gold can be redeemed for,which of course is cash.A person would be nuts to make a purchase with physical gold,so the only 2 things they can do is hold onto it or liquidate.TV commercials emphasize the versatility of gold trading,but a radical increase in price would be the only logical reason to purchase large quantities,and an unstable gold market makes that impossible to predict.
ReplyDeleteMost Chinese and Indian gold purchases have now gone to the black market, as to avoid taxation. Demand for physical is very high, only the paper gets traded. Go to any coin show or gun show that has gold, it gets bought out in minutes.
ReplyDeleteGold buying is out of reach for most people,including myself.More and more are living from paycheck to paycheck and lack investment funds.
ReplyDeleteI've invested in brass, copper and lead.
ReplyDeletewith those, I will take your gold if I need it, which i probably won't because you can't eat it.
If you want to invest wisely... invest in something that can be bartered in a time of shortfall. Something that people will need...like ammo or food. Gold = fools gold.
ReplyDeleteThere is no reason to invest in anything the way things are headed. We will all be living day by day and relying on the Lord. There is not enough money to secure for what is about to come. You cannot beg or barter your way out of this one. God alone will save you. God alone will give you shelter.
ReplyDelete