Is Gold Demand Coming Back?

Demand might seem stifled in the gold market, but it is for good reason. After all, India has put a ban on the importation of gold. But, there all we see is a population turning to silver in order to hedge their paper.

Simple laws won’t keep them from continuing their age-old tradition. But Europeans, also, are buying precious metals. Everyone knows that QE won’t slow down .

Individual investors stepped up gold purchases, which rose to a six month high in October, according to the BullionVault index.

The index rose to 54.3 last month from 53.0 in September, although demand has remained below the 56 level of the year prior, and below the 71.1. peak in September 2011.

In perspective, this is only a slight increase. And the effect on price is non-existent with gold down $.060 or 0.05% yesterday.

Gold has suffered five consecutive days, with the US Dollar gaining strength. All this despite a continuing ultra-loose Federal Reserve monetary policy.

But, as the BullionVault index implies, bullion buying has increased globally.

For instance, Turkey’s gold imports rose more than threefold in October to 15.98 metric tons, a considerable increase over the 4.8 tons in September.

That is a massive increase for just one month. This is the sort of precious metals movements we are seeing being made by many central banks in Europe and Asia. And they are certain to continue, especially as low prices and inflated stock markets are the order of the day. So, while gold demand might not be coming back in droves, one can be sure that it has remained consistent.