Quoted at International Business Times on Gold Demand
Gold Demand: Western Investors Flee In Record Amounts, Asian Consumers Attracted By Price Plunges: World Gold Council
By Nat Rudarakanchana
…Since Chinese consumers tend to sell gold in extreme circumstances of political volatility or danger, it could be hard for the hoard of gold now in Chinese hands to make its way back to the U.S. and Europe quickly, said gold bull Edmund Moy.
“When gold flows east, when it goes to individual investors, that becomes family wealth that passed down to the family,” Moy told IBTimes on Tuesday. “It’s unlikely that those individual investors will sell gold unless the markup is incredibly high.”
“If U.S. demand and European demand begin to tick up, there’s going to be a supply crunch, because that gold is not going from east to west,” added Moy. “If inflation starts to tick up, and U.S. investors want to buy a lot of gold quickly, there’s not going to be a lot of gold, quickly, to buy.”
Moy also cited stagnant supply outputs from gold miners, who are struggling with high capital and production costs. …
Read the full piece at IBtimes.com.
Tags: Gold
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