Gold price continues to rise

Fri 12 Apr 2024

Gold: with a background of continual Chinese state buying, Gold has continued to rise, making many wary of an imminent setback: reports claim bullion traders currently have more clients offering to sell than clients looking to buy, which is disturbing but not surprising. If you bought gold bullion this year in January based on £1,600 t oz and can now sell it based on £1,800 t oz, you've laid out cold cash and might want to lock in a profit by selling at least some of it. However, a setback, even with a steep price drop, will not last that long.

Scrap: Gold scrap values track the market price. Those whose scrap has accumulated over the years will probably conclude that gold is likely nearing its top and that a sale now is prudent as opposed to risking mistiming things and having to sit through another twenty-year cycle; LIGHTENING THE LOAD is how one seller put it to me, and I could not disagree with him.

Outlook: Grown-up comments elsewhere raise the spectre of de-dollarisation by China, Russia and others. I believe this is a serious issue that would affect us all by causing the U.S. to engineer a big if not a global, war. If the dollar fails to remain the international currency for trade, Americans look at around 30% of their purchasing power evaporating.