gold bullion

Gold demand at record levels in Q1 2016

OWNx Team Gold & Silver Market, News & Commentary 0 Comments

The World Gold Council reports that gold demand surged in the first three months of this year. That would certainly help explain why the price of gold has surged from $1,060 to nearly $1,300 in that time frame. They reported that the increase was driven by “huge” purchases of gold ETFs due to investor concerns regarding an uncertain financial landscape.

This is how we would expect the price of gold to act given such demand. However, in the coming years economic and financial system uncertainty will continue to be in the news. Thus while we expect significant volatility in the coming months, the long term price trend appears to have shifted from the sideways to down pattern we have experienced for the past four plus years. As always, we believe physical gold and silver bullion is the best way to own gold and silver.

The next 12 to 24 months should be a good time to dollar cost average into the market as we get set for a major change in the direction of the price of silver and gold and a possible multi-year bull market beyond 2017.

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