This Month in Gold – February 2015

Chinese Gold Demand Outpaces World Production
Forbes – More than 315 metric tons of gold were withdrawn from the Shanghai Gold Exchange from the beginning of January to mid-February. During the same period, only 300 tons were newly-mined around the globe. The gold demand came in preparation for the Chinese New Year, the country’s biggest holiday. China is already the world’s second largest gold consumer, but its bullion demand will likely surge with changing demographics. In the next 5 years, China’s middle class is expected to grow 66% to 500 million.
Read Full Article>>

Worried Europeans Rush to Gold on Falling Euro
Reuters – European gold dealers saw increased sales of physical bullion in January as the euro dropped 6.7% against the dollar. This was the euro’s biggest monthly drop since mid-2012. Meanwhile, gold priced in euros rose 9% from the beginning of the year. Year-over-year in January, the Austrian Mint reported a 6% increase in gold coin sales, while German coin dealer Degussa had a 35% increase. The gold demand and market turmoil was mainly a response to the European Central Bank’s announcement of quantitative easing and the Swiss National Bank’s unpegging of the franc to the euro.
Read Full Article>>

Gold Imports Jump in India as Government Eases Curbs
Bloomberg – India imported 940 metric tons of gold in the first 10 months of this financial year, compared to just 662 tons in the entire previous year. The Indian government has eased gold import restrictions by dropping the 80:20 rule that required importers to re-export 20% of their shipments. The government also has allowed more companies to import gold. Kotak Commodity Services analyst Madhvi Mehta said, “Imports may be around 1,000 tons this fiscal [year] and remain stable next year unless we see any fresh government regulations coming in.”
Read Full Article>>

Greeks Turn to Gold on Political Turmoil
Bloomberg – The Bank of Greece sold 5,849 UK Sovereign gold coins in January, compared to 7,857 in the entire 4th quarter of 2014. Coininvest.com also reported an increase in Greek gold demadn. With Greece’s newly-elected Syriza party at odds with creditors over bailout loans, Greeks worry about financial instability and a possible exit from the euro. Macquarie Bank Ltd. analyst Matthew Turner said, “It would be understandable for Greeks to buy gold because they are afraid of losing their money.”
Read Full Article>>

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!