Buying the Dips
Gold, meanwhile, is showing an increasing aversion to going down in US Dollar terms. Every time it "trespasses" below the $US 1500 level, it bounces straight back up again. And every time Gold does temporarily slide, the demand for the physical metal - as distinct for the paper claims on sale in the futures markets - grows apace. Over the first two weeks of May, the US Mint sold 85,000 ounces of American Eagle Gold coins. The last time volume reached that level, the $US Gold price rose 21 percent in the ensuing year. Physical demand in China and in India is surging. South African sales have reached their highest level in almost a year. The list goes on. -
Bill Buckler, Gold This Week...21 May 2011