Strong demand continues for physical gold, despite the enhanced focus on the ETF outflows in 2013, 2014 has set off on a roll as The Royal Mint refinery has stated that due to the lower gold price they have witnessed exceptional sales of gold bullion.
This has had the knock on effect of the Royal Mint completely running out of UK Sovereigns, this only highlights an ever increasing phenomenon that they are and remains to distinct markets within the precious metals sphere, that is one for paper and one for physical gold.
As has been publicised over and over again by the media the paper market aka ETF’s has certainly seen a battering whereas the physical market one could say has gone from strength to strength, certainly many bullion dealers have expressed a series of record sales since the drop in price.
Perhaps a way to balance out these two markets is in fact a rise in the gold price. For example Bloomberg reported that the US mint sold 56,000 ounces of their famous American eagle coins throughout December, which contributed to a 14% gain in annual sales.
Australia’s Perth Mint sold 41% more gold in 2013 that 2012, with a similar picture in Turkey.
Back in the UK, so far the demand is not showing any signs of abating since the dip in price.
Therefore it begs the question, will 2014 see a continuation of this hungry demand? Seeing as the price seems to remain at a preferential buying price, we think that investors both small and large will continue to buy up gold bullion bars and coins making use of these lower prices.