Gold is on the rebound after a 4.5% drop this week, and the plunge has triggered serious concern about the condition of the global economy.
“We are already seeing a strong response to the fall in prices, with a sharp pick-up in physical gold sales by investors and retail consumers in the two key consumer markets - India and China,” Mark Pervan, head of commodity strategy at Australia & New Zealand Banking Group, wrote to Bloomberg today.
While the value of the biggest gold producers declined by $169 billion, jewelers took advantage of the 30-year record-low gold prices to stock up for anticipated high demand retail and jewelry sales.
Chinese and Indian jewelers are optimistic that gold will rebound as much as 29% by December 2013, to as high as $1,800 an ounce, as demand increases, according to billionaire Indian jeweler T.S Kalyanaraman, Reuters reported.
“There’s been continued buying interest, particularly into China,” Nigel Moffatt, treasurer of Australia’s Perth Mint said on Bloomberg Television Friday.
Americans took advantage of the price dip to buy stock in a historically high yielding investment. ...