While the gold market is experiencing a slight dip on the news out of India and Europe, indications are that gold and silver dealers will be busy with buying on the dip orders that will come into effect at various points before weeks end. Gold and silver have been selling at record volume, beginning in January of 2012 when the US Mint broke records for both the sale of its Silver Eagles and its Gold Eagles.
Now, the economics minister of India has announced that the country will be slowing the very rapid pace of its gold import. Most people were unaware that India makes the biggest gold market on the planet with China placing in a close second. The tradition of storing wealth in gold, specifically in gold jewelry is particularly strong in India and will continue, though perhaps at a slower pace for a while.
Additionally, there is resumed trouble emanating from Europe and the Euro took a serious drop in currency trading. This is affecting demand for gold in Euro denominated economies and will eventually find an equilibrium that will ultimately find the price of gold going much higher.
Silver is in much the same boat. The spot price took a serious intraday dip in the lower $30 range, but the metal’s fundamentals are still very much intact and every investor knows it. Should the dip proceed lower, even more investors, working Americans, and our retired populations will begin to look for better and more substantial holdings in gold and silver to ensure their financial freedom.
There will be trouble in Europe for the foreseeable future. It’s just baked in the cake, as they say. The question that should be asked is how do we position ourselves to not only protect our wealth from the European problem, but also to grow and increase our wealth while the problem works itself through.
The best answers we have are gold and silver. They are the most fundamental antidotes to currency problems because they are the underlying goods behind currency. We can expect to see the value of gold and silver rise as the problems with currency abroad escalate and this will make gold and silver dealers very busy people.