Gold – Asia to the Rescue
By: Jeffrey Nichols
I’m just back at my desk from a fact-finding mission to Shanghai and other Asian gold-trading centers where I met with gold importers, traders, jewelry manufacturers, retail outlets, and exchange officials.
The key take-away: Just as weakness in Asian markets may have contributed to the latest gold-price slump, an imminent recovery of physical demand across the region could be the catalyst to higher prices later this year.
While demand throughout the region has been soft for over a year now, most major players we met with expect at least a gradual recovery in gold demand – and, hence, imports – over the next few months.
Moreover, we could see still-bigger gains over the years ahead . . . with quarterly quantities in both China and India (by far the two biggest and most consequential national markets) eventually exceeding the record high volumes of 2013 and 2014...