We’ve been reporting over the last couple of days about the enormous level of demand for physical gold coming out of countries in the East including China, India, Japan, and also in the MIddle East in Turkey and UAE. It seems the buying frenzy is not limited to the Eastern hemisphere as reports are emerging that gold is in thin supply in the US and UK as well.
The United States mint reports of sales over 5 tons in April which is more than the previous two months combined. Of particular note is the fact that they have completely sold out on 1/10 oz coins, a first complete depletion of its kind in the US gold market. The small denomination in coin purchase shows that the every-day man on the street with little cash to spare is in on the action, which is a bullish case for gold at a times when some are trying to paint gold’s shine to be over among the general population.
In the UK, Britain’s Royal Mint has sold three times more gold in April compared with the same time a year ago. Shane Bissett, Director of Bullion at the Royal Mint, estimates that sales were up 150% compared with the previous month as a clear demand increase for physical gold is apparent.
Standard Charterered Plc, which provides gold shipments to India, said last week sales broke their previous record by 20%. It’s becoming clearer each passing day that physical gold demand is not going anywhere, and a bear market is unlikely giving the uncontrollable demand that has surfaced over the last few days.