This Week in Gold: Supply and Demand

This week in gold, the relationship between gold and supply and demand was especially apparent, as well as its correlation with inflation. We also shared the top 20 conferences every gold investor should attend this year. See the article summaries and links below for more information.

  • Gold makes a great investment, but have you ever wondered why? What makes gold unique? As Forbes contributor Keith Weiner puts it, “Nearly every ounce of gold ever mined is still in human possession. Think about that for a minute. Do we accumulate other commodities like that?” Gold is not produced for human consumption. Investors have always used it for its main purpose – to store money. It serves that purpose equally as well regardless of how much it costs per ounce at the moment. It has no risk of default. Read more about What Makes Gold Unique.
  • In platinum news, the U.S. Mint recently re-launched the American Eagle Platinum Coin and sold 10,000 ounces of them in just three weeks. Additionally, platinum prices rose by about 1% while gold’s price fell by 3%. This may have been spurred by concerns over supply, as top platinum-producing country South Africa is enduring a two-month long strike in the mining industry. Precious metal coin sales also tend to be seasonal. Read more here.
  • What might April look like for gold prices? Gold prices hit a seven-week low in March, and Louis James of Casey Research warns that “March has been, on average, the worst-performing month for gold” based on past data. Losses and a bad month are likely to mean gold prices will rise in April. Inflation is also known to correspond with the value of gold, but just how strong is this relationship, historically and globally? Find out here.
  • Interested in traveling while also learning just about everything there is to know about investing in precious metals? Conferences are great opportunities to network with leaders in the industry, learn about the latest investment options, and hear about trends or events that may affect gold’s value in the future. Check out the 20 Conferences Every Gold Investor Should Attend in 2014.

Adding gold to your portfolio brings diversification, solid protection, and profit potential. Gold and other precious metals offer the comfort and security of physical possession, intrinsic value, immediate accessibility, simplicity, and ease of liquidity worldwide. If you are interested in purchase gold for private ownership or adding it your retirement account, consider requesting a Free Gold Guide by contacting American Bullion at 1-800-326-9598.