Gold has dipped below $1,300 this morning. The reason is
that news is out that China’s gold consumption had fallen more than 19% year-on-year
to 569.45 metric tonnes.
Investors bought fewer bars and coins, offsetting higher
demand for gold jewelry. Sales of gold bars and coins fell 62.1% and 44.3% respectively,
while jewelry sales rose 11% to 426.17 tonnes. Industrial consumption rose
11.3%.
At the same time, China's total gold production in the first six
months of 2014 reached 211.1 metric tonnes, up 9.47% from a year ago.
On the other hand, if you know gold’s seasonal
trends, is this dip frightening or a buying opportunity?
Now, just because gold usually goes up in the next few
months doesn’t mean that it has to. Sure, gold could go lower.
But consider that gold imports into India surged 65% year over year in June, despite the fact that India’s government hasn’t eased its
tariffs on gold imports. China isn’t the only game in town.
Plus if, you think we’ve seen the last of geopolitical
worries, I think you have another thing coming.
Buy gold and miners ... or don't. You always have to do what you're comfortable with. But it's a truism of the market that the best time to buy is when others are selling.
Good luck out there today, and good trades.
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