Gold demand set to increase in China and India Mostly Through Investment Bars in China
It seems while we bottom out here in gold we have many reasons formulating that the next move up should have some strength behind it, not a short term pop and drop like we have seen so many times.
- India has set the gold tax lower than expected. The government has set the tax at 3% set to take effect on July 1st. This is less than the 5% that was expected.
- Gold consumption hit a 7 year low in India, the biggest buyers of gold historically, as there was a crackdown on black money that scared buyers away. Gold imports increased 20% in May and should increase even more as the tax is lower. India imports most of its gold.
- China, currently the world’s largest consumer of gold, has seen is looking at a 50% increase in imports for 2017 as they go through some real estate, stock market and currency woes. Sales from bars for investment purposes are expected to climb 60% versus 1.4% for jewelry. Those who point to jewelry demand as a reason to own gold or not to should take note of this change in gold demand dynamics.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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