The end of the year is closing in once again. In 2013 this was a good time to buy gold and gold mining stocks. After a strong start in 2014 the sector took another dive, but recently the precious metal has been working hard on its comeback. According Jeff Clark this is also the start of a great 2015 for gold.
Investors who want to invest in gold or gold mining stocks have to ask themselves these 7 questions first of all. If the answer is positive there is no reason to doubt and strengthening your portfolio with gold and the best gold and silver mining stocks is the best thing to do.
# Why is China buying so much gold?
You often hear that Hong Kong imports are doing worse this year compared to last year. That is correct, but China is importing directly from Switzerland these days, for example, so that the overall import figure is much higher than last year.
# Why is China’s buying pattern speeding up?
China has been making it increasingly easy to import gold. This makes that we are not only seeing more volume, but also lower premiums for Chinese buyers and that makes gold more affordable for the Chinese.
# Why are other countries hoarding gold?
The demand for gold in China and India is already higher than the output of gold globally and Russia is also eager to build its reserves. Ever since the economic sanctions against the country, it has been hungrier for gold. Is there something they know that we don’t?
# Why are retail investors not selling silver ETFs?
In contrast with GLD, SLV is an ETF with many retail investors on board. A lot of gold in GLD has been sold with the gold price going down, but the reserves of SLV are on the rise despite the depression in the silver price.
# Why are physical gold and silver selling hotcakes?
2013 was a record year for gold and silver coins, despite the strong drop in the price of these precious metals. In 2014 the price of these precious metals has not grown much higher, but once again the sales figures of the US Mint, Perth Mint, Royal Canadian Mint … are breaking records.
# Why are big fund managers buying gold?
Ray Dalio runs the biggest hedge fund in the world with about $150 billion under management. At this time, Ray Dalio is keeping 7.5% of his portfolio in gold. Joe Wickwire from Fidelity Investments also likes this time for buying gold.
# Why are countries repatriating their gold reserves?
The Netherlands repatriated 122 tons of gold recently and, if it is up to Marie LePen, France will follow suit. There was a referendum in Switzerland recently about repatriating its gold and there are many other countries that are considering it.
With all the above in mind, it is difficult to not invest in gold at this point.
Comments
Log in or sign up to join the conversation.