Abney Associates advising investors to place a portion of their holdings into the precious metal as the rally on bullion is continually driven by high demand for the physical product.
Gold bullion’s rally continues with many analysts now hinting that it may continue well through December and into the New Year. Asian markets in particular have seen demand for gold bullion surge as investors scramble for the commodity. In the second quarter, this year China and India have led the rush with demand soaring 87 percent and 71 percent for both countries respectively.
It has been a turbulent year for Gold as mostly American speculators rushed to offload ETPs on the commodity causing prices to drop nearly 19 percent in the first half. The largest of these selloffs by John Paulson & Co., reduced their stake in SPDR Gold trust by 11.6 million shares or just over 50 percent of their total holdings. This move seems more and more a rash decision by the Billionaire.
“The demand for physical gold has not diminished throughout the year with investors need to hold the precious metal increasing and this doesn’t come as surprise to anyone who has been paying attention to markets sale volume. The only upset to the market was in relation to the removal of the Fed stimulus program and as investors within the United States bet on the strength of the U.S dollar against Exchange Traded Products contrary to every piece of market data available. The demand for gold bullion has far surpassed that expected throughout U.S, Europe and Asia,” opined James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.
Abney Associates analysts are predicting the commodity will continue its rise reaching a moderate price matching inflation towards the end of the year as gold output continues fall short in meeting the growing demand. With buying by many central banks expected around October, some argue that this value will prove to be conservative. Turkey’s central bank, which uses bullion in trade for oil and gas with Iran, entered the market early with a record bullion purchase in May.
Abney Associates’ Senior Vice President of Mergers and Acquisitions James Carter said, “We are seeing reports that mirror our predictions with many market analysts saying that within no other commodity market do you hear hysterical predictions of doom as you do with Gold. It is proving to be an exciting period for many as movements in markets around the world that now interconnect in unexpected ways are creating new ways to place investors onto solid footing for advancement in today’s marketplace. The reality is that circumstances are always changing so it’s wise to hedge your concerns and that for our clients is the same as nearly every practical investor worldwide, Gold.”
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Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.