With the global equity markets tanking and the gold price rocketing nearly $200 higher so far in 2016, we are once again seeing frenzied buying of bullion. ZeroHedge has reported:
London-based ATS Bullion added it had been inundated with orders for the past week. The firm has sold 4,000 gold bars and coins since February 1, a 40pc rise on the same period a year ago when it sold 1,500.
“It’s been crazy – it’s been the best week since 2012. We’ve had people queuing round the block,” said Michael Cooper of ATS Bullion, a family run firm that trades online and also from an outlet in the West End.
Chinese demand is said to have surged 25% during the fourth quarter. Physical delivery from the Shanghai Gold Exchange reached a record 2,596 tonnes, representing more than 90 percent of total global output for the entire year.
Sales of American Eagle gold bullion coins reached 124,000 ounces in January, up 53% from January last year. Global Q4 gold demand was up 4% from an already high base, with investment demand up 15% and central bank demand up 25%. On the other side of the equation, total supply was down 4% in 2015 and a whopping 10% during the most recent quarter.
Perth Mint Sold Out of Popular Gold Coins
Australian gold and silver sales surged to three-month highs in January, the latest figures from the Perth Mint show. Year-over-year gains were impressive as well with gold sales 2x higher and silver sales 2.5x higher. January sales of Perth Mint gold coins and gold bars reached 47,759 ounces, rising 19.1% from the previous month and jumping 106.1% over January 2015.
Apparently, this surging demand was too much for the Perth Mint to handle as they are now completely sold out of many of their most popular gold bullion coins.
This is coming at a time when COMEX vaults are nearly empty. When you consider how much paper money is sloshing around the world and how small the gold market is in relation to the stock market or bond market, it is easy to see how a rush of investment money into the gold markets could overwhelm supply and send the price soaring.
To be sure, you can still purchase other Australian gold coins and other gold bullion at most major online sites. I have been buying the Australian Kangaroo coins recently and recommend a few places where you can pick them up:
JM Bullion has them for $1,285 by wire or check and $1,336 by credit card
Provident Metals has them for $1,281 by wire or check, $1,295 by Bitcoin and $1,334 by credit card
It is possible that gold could still have one more move to the downside and test $1,000, but the chances that we have seen the bottom at $1,045 have increased significantly over the past two months. I am an admitted stacker, steadily buying in tranches each month, regardless of the price. I believe that gold anywhere under $1,500 per ounce will look incredibly cheap within the next few years.
While I advocate holding physical metals in your possession first and foremost, mining stocks have been offering more than 2X leverage to the gain in the gold price so far in 2016. While gold is up roughly 18%, the GDX is up 37%. Ride the gold stock bull higher with us… sign up for a premium membership.