This web-logger has come to the conclusion that no matter where the current gold spot price resides, there will always be those “never say aye” killjoys who proclaim that the gold bullion market will soon to return to below $400 levels, or lower. Reality is an entirely different animal, and nation’s central banks will always need an ample supply of gold, to bolster their financial leverage in the global market. Presently, the gold spot price (which represents the cost of one troy-ounce of pure gold) is at $1114.10 per troy-ounce, after being down as low as below the $1060 mark less than a month ago.

Experienced investors know that the gold bullion market historically picks up steam when whole nation’s economies become overextended, and hard assets are required to represent actual wealth, when printed (or fiat) currencies struggle to maintain their buying power. When nation’s central banks purchase enormous quantities from the IMF (International Monetary Fund), these gargantuan buys historically tend to stimulate the gold spot price, as a greater perceived need is seen in the market, and the gold spot price typically rises as a result.

The United States and Europe were hoping for a boost in the global gold bullion market from India, since the IMF has 191.3 tons of gold bullion for sale, and India was considered to be a likely buyer. India is the world’s largest gold bullion consumer, but India has just raised her gold and silver import taxes by 50%, so India may only purchase 28-32 tons of bullion, according to Suresh Hundia, President of the Bombay Bullion Association.

Investors who complete their research, are encouraged to contact one of our friendly specialists, who offer expert consultation on precious metals investing, as well as institutional discounts on bullion, and certified rare gold coins.

Jonathan Monroe