The price for gold has been moving somewhat sideways over the last several weeks. We continue to hear professional investor and Wall Street types condemn gold and precious metals in general. However, if you look at some of the trends in gold and gold demand, a very different picture emerges.
The latest World Gold Council report shows that the demand from the “official sector” a/k/a Central Banks, remains robust with central banks being an overall net purchaser of gold and some banks making significant purchases.
Now contrast this with the fact industrial and jewelry demand are down 7%, but investment demand is up 13% year over year.
What is this telling us?
The fact that the people that print money are acquiring gold in significant quantities and that investment demand for gold is up 13%, but consumption in equipment and technology tells us that people and countries are acquiring gold as a safe haven and that they are not purchasing consumers goods that use the metal.
How will this impact your self directed IRA?
Its clear from these trends that people and central banks are preparing for the perfect storm in economic terms. Its clear that gold has not hit its peak demand or price. Its our recommendation that you check your self directed IRA portfolio and determine the right allocation of precious metals for your self directed IRA.
The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.