Ultra-Loose Monetary Policies Continue - Coin, Bar Demand Very Robust, Delays And Premiums Rising

Very Robust, Delays and Premiums Rising

• Demand for physical gold this month at “historically high level” - HSBC
• Q3 U.S. Mint gold sales set to dwarf those of previous two quarters
• Supply of physical silver “continues to be tight” and premiums rising
• China and India demand remains very strong
• Seasonal Asian buyers to add to demand in coming weeks
• Still very dovish Fed bullish for gold

Demand for physical gold and silver in August and September has been exceptionally strong as investors seek a safe-haven from market turmoil, as the global economy slows down and as it becomes clear that the Federal Reserve and central banks generally are slowly losing credibility and ultra loose monetary policies are set to continue for the foreseeable future.

But rising premiums and delays for popular bullion products suggests that proper price discovery reflecting real world supply and demand may be at hand.   

However, it is clear both from the enormous demand and from the shortages in the precious metals markets that many investors are becoming nervous about the markets and the state of the global economy.

********

Courtesy of http://www.goldcore.com/us