I was reading an article the other day by Neil Charnock who says the Gold Bull Market has hardly begun. He comments that gold prices will remain driven in part by crises in various currencies, but that at some point gold coin prices will disconnect, at least in part, from currencies and rise due to other factors.
Gold demand dynamics is one of those other factors. He says gold demand from "those in the know" will continue to drive demand.
We also know from numerous reports, that central banks have become net buyers of gold instead of sellers. This puts pressure on the gold supply causing now the impetus of gold demand on the gold price to have a potentially exponential effect.
Consider this; For nine years central banks have been huge sellers of gold. In the face of dwindling annual gold production, this selling, inhibited the rise in gold prices. Yet, gold prices rose nonetheless – nearly 400% in 10 years. Now, as production continues to wane, and central banks become buyers of the very gold they sold, gold demand is going to get hit with a double whammy. Ask yourself this. If gold prices have risen 400% in 10 years with Central banks as huge sellers nearly the entire time, how much higher can gold prices go when those same banks become huge buyers?
These are just some of the reasons analysts like Neil Charnock say the gold bull market has hardly started. It could be a great time to add a few new gold coins to your stash.