16th Apr 2014
Gold Market Report
Gold has at long last dipped from record highs (1300 an ounce versus 1600 an ounce). Demand for gold remains strong and is projected to continue particularly with the urbanization of China as more cities develop there. India, China and the United States are the largest consumers of gold, 90% of which, is in the form of jewelry.
Did you know that there are some IRA funds that are available based on gold? I didn’t. Similarly, there are investors who buy gold coins or bars as a hedge against inflation because gold is a metal not a paper and its value can be held physically. China is the largest purchaser of gold as a part of their investment portfolio for safety and savings. Chinese consumers are also reported to be one of the best “savers” in the world and some reports say that half of that savings is in the form of gold.
Don’t worry. We’re not selling gold bullion but it’s interesting to get the global picture none the less. That being said, now is a great time to consider a gold jewelry purchase with Rock of Eden. None of our gold pieces were purchased during peak gold prices (we avoided buying during this time) and we did not mark up our pieces at that peak.
Is jewelry a hedge against inflation? You bet. That amazing gold bracelet you might be sporting is valuable beyond the aesthetic. In China, gold is often used as collateral in business deals. During certain war times, jewelry not money, was hidden in clothing to be used later as an international currency.