Here’s a bit of good news to get you through Hump Day: Despite gold’s recent paper-driven slump, the yellow metal has made a solid comeback in recent weeks. As Resource Investor‘s Mark O’Byrne points out, we can primarily thank skyrocketing Chinese and Indian demand for the turnaround:
What we in the West need to appreciate is that in the case of both India and China, where around one third of the population of the Earth reside, – it is masses of individuals, families and local businesses who are driving this demand.
The desire to own gold as savings and financial security is culturally embedded in these ancient cultures.
As festival season in India kicks off, gold bugs remain hopeful on steady demand.
And while the U.S. dollar has recently gained momentum, in China, the Yen continues to take a beating. Singapore Fund Manager Juerg Kiener told Kitco he expects Asian demand to accelerate as the region’s currencies see continued weakness.
“If you look at [gold] in almost any other currency than U.S. dollar for the year, you’re up. Every Asian made money this year in buying gold.”
Click here to watch the interview.
Photo courtesy of resourceinvestor.com