Currently, the gold price is moving sideways, hovering around the 1800 dollar mark per troy ounce. This continues the price recovery of the last few trading days. Since the price collapse in August, the gold price could even reach the highest level today on the London Stock Exchange.
Supported by falling yields on U.S. government bonds, demand for gold is currently rising again. It is particularly interesting to note that for the first time in 2 years, demand for physical gold is higher than demand for exchange-traded gold index products.
High demand for gold among private investors
According to research, around 25 percent of all Germans over 18 hold gold, because gold is traditionally considered a fail-safe investment. The recent declines in the gold price have apparently prompted private investors in particular to make additional purchases.
The World Gold Council published the latest figures on gold trading last Thursday. Apparently, especially the trade with gold bars and gold coins is currently experiencing a real boom.
For example, demand for physical gold in the third quarter of 2021 was 19 percent higher than in the same period last year. Demand from private investors in particular increased significantly and was higher than demand for exchange-traded gold index products for the first time in 2 years.
Inflation and catch-up effects in India and China ensure high demand
The experts from the World Gold Council see a major reason for the increased demand among private investors primarily in the fact that the relatively stable gold price currently does not raise hopes of rising prices among short-term investors.
Long-term oriented private investors, however, are increasingly buying, especially in view of the current inflationary situation, and prefer to take refuge in stable values such as the precious metal gold.
However, catch-up effects in India and China also led to increased demand for physical gold, according to experts. Supply chain bottlenecks due to the Corona pandemic meant that private investors from China and India were hardly able to purchase gold for months.
Experts see good entry opportunities
In the longer term, the gold experts see the outlook for all precious metals as thoroughly positive. There is still no end in sight to inflation, and inflation fears have traditionally driven private investors in particular into investments that are as crisis-proof as possible.
Currently, the gold price is moving sideways, hovering around the 1800 dollar mark per troy ounce. This continues the price recovery of the last few trading days. Since the price collapse in August, the gold price could even reach the highest level today on the London Stock Exchange.
Supported by falling yields on U.S. government bonds, demand for gold is currently rising again. It is particularly interesting to note that for the first time in 2 years, demand for physical gold is higher than demand for exchange-traded gold index products.
High demand for gold among private investors
According to research, around 25 percent of all Germans over the age of 18 hold gold, because gold is traditionally considered a fail-safe investment. The recent declines in the gold price have apparently prompted private investors in particular to make additional purchases.
The World Gold Council published the latest figures on gold trading last Thursday. Apparently, especially the trade with gold bars and gold coins is currently experiencing a real boom.
For example, demand for physical gold in the third quarter of 2021 was 19 percent higher than in the same period last year. Demand from private investors in particular increased significantly and was higher than demand for exchange-traded gold index products for the first time in 2 years.
Inflation and catch-up effects in India and China ensure high demand
The experts from the World Gold Council see a major reason for the increased demand among private investors primarily in the fact that the relatively stable gold price currently does not raise hopes of rising prices among short-term investors.
Long-term oriented private investors, however, are increasingly buying, especially in view of the current inflationary situation, and prefer to take refuge in stable values such as the precious metal gold.
However, catch-up effects in India and China also led to increased demand for physical gold, according to experts. Supply chain bottlenecks due to the Corona pandemic meant that private investors from China and India were hardly able to purchase gold for months.
Experts see good entry opportunities
In the longer term, the gold experts see the outlook for all precious metals as thoroughly positive. There is still no end in sight to inflation, and inflation fears have traditionally driven private investors in particular into investments that are as crisis-proof as possible.
Even though the gold price is stabilizing and leveling off at the moment, experts currently see more opportunities than risks for private investors to enter the gold investment market. Especially in times of a general price increase, gold has always proven to be a classic protection against price dynamics, so at least investors looking for a longer-term and crisis-proof investment can’t go wrong with an entry into gold investment at the moment.
