China’s Central Bank and Chinese consumers are buying gold at a record setting pace for more than 18 months, pushing the price of gold to new record levels. In recent weeks, the gold price has come down some, leading many investors to wonder if it’s a good time to buy gold?
Analysts from Citibank, JP Morgan, Goldman Sachs and others are predicting that gold price topping $3,000 an ounce by the end of the year is not out of the question.
China, Russia and other countries have formed the BRICS alliance due to unfavorable trading conditions when using dollars instead of local currencies. Many countries in the south, including Brazil, India and South Africa are also on board and have already begun trading in goods and services in local Brazilian Reals and Chinese Yuan without needing to convert to dollars first.
China’s gold buying in recent years is being viewed as a step towards the creation of a new BRICS currency, which continues the country’s push towards de-dollarization. The new BRICS currency is expected to be backed by a basket of commodities, including gold and silver and other rare earth elements.
Analysts are expecting the gold price to continue to trend upwards as de-dollarization efforts continue and the global economy transforms from fiat to asset backed currencies.
Gold is seen as a safe haven for investors and is a long term store of value and wealth. As a tangible asset, the most popular form for investors is gold coins. Gold Coins have served as a form of money for thousands of years.
Today’s investors have a plethora of options when buying gold coins. There are a variety of modern issues such as the American Eagle, Canadian Maple Leaf, South African Krugerrand.
Additionally, historic gold coins such as the $20 St Gaudens Double Eagle, the Incuse $5 Indian Gold Coin and other Pre-1933 coins remain popular and may also serve as a numismatic investment.
FindBullionPrices.com helps investors find the best deals on gold coins and other precious metals by comparing prices from a large assortment of well regarded precious metals dealers such as APMEX, SD Bullion, JM Bullion and Bullion Exchanges.
Dealer premiums fluctuate and it’s good to make sure that you’re getting the best price at the time you’re ready to buy.
In China, consumer demand is largely driven by younger generations that see gold as a long term savings vehicle. The most popular item is “gold beans”, which are 24k gold bean shaped nuggets that each weigh approximately 1 gram.
Consumer demand in India is driven by the jewelry market, where the most common form comes in the form of 22 karat gold jewelry. In the United States, consumer demand for gold is also largely based on the jewelry industry, which has seen a resurgence in recent years.
Gold is also utilized as an industrial metal. It’s used in the consumer electronics and automotive industries consuming more than 70 tons of gold each year. The trend towards electric vehicles and other forms of renewable energy provides support for gold demand, with most types of semiconductor chips using the metal in the form of plating and thin bonding wires.
