Global Currency Re-Evaluation Is Inevitable: The New Cash for Gold Trade

Global Currency Re-Evaluation Is Inevitable: The New Cash for Gold Trade

The new cash-for-gold trade like Trump’s man said dollar up gold demand down what you like about Donald Trump but he does want he tweets right savory and I should really invoke the dollar is going to get stronger and stronger and ultimately I want to see a strong dollar the grabber and teeth told CNBC in January back when the US currency fell to its weakest value against the world’s other currencies.

Since mid 2015 the dollar has snapped the downturns on the forex market and pushed back against all comers except the Japanese yen that not only defies all the Wall Street hacks hedge fund short sellers in Washington pundits they knocked Trump for wanting to boost both US exports in the US dollar and near impossible pairing under the president’s own antique currency.

they’ve been buying stocks

Manipulator logic I would buy Qing dollar and they would sell gold said Trump’s new economic advisor Larry. Let’s bomb the Dow higher Kudlow on his appointment in March private investors were already way ahead of the x en bici man but instead of the dollar they’ve been buying stocks which may or may not prove smart depending on what happens to equities up here in the US says the new 2017 gold demand analysis from specialists Thomson Reuters TFM s today.

25% net of investors selling

The appointment of President Trump led to improving economic sentiment with investors increasing their appetite for risk his equity markets reached new record highs retail investor gold bar demand shrank in 2017 by 25% net of investors selling says gif m/s and corn demand was even softer fabrication of new gold coin by the US Mint fell by more than two-thirds from 2016.

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all-time highs minting

Hitting its lowest level since at least 2005 on the consultancies data how come the underlying reasons were the prior strength of demand leading to an overhang of metal leading to a lack of fresh interest as equities recorded repeated new all-time highs minting levels were also affected by the second-hand coin market in which low premium these coins thanks to ample supplies back to market from previous spiders turn sellers negatively impacted the primary market bottom line the Trump White House has so far given private US investors little reason to buy gold bars or coin.

The gold market

Demand has sunk an investor selling has jumped and where gold prices diverged in 2017 by holding flat for European UK and most other investors while US dollar quotes rose 2018 has so far extended the trend by flipping over Trump’s strong dollar is offering a quick profit and gold to non-us investors increasingly, they’re taking it to driving down demand for new coins and gold bars in Europe and the UK, that’s forcing retailers on this side of the pond to improve their buy back offers, and advertising actively seeking a share of this new cash for gold market.

could face a rude awakening

If you think you could have seen this coming you’re right Western households couldn’t reduce their investment holdings during the bull market of 2001 to 2011 we wrote in spring 2016 because they haven’t previously built any to sell but now Western households, can not repeat the rediscovery of gold they began a decade ago and retail dealers expecting a repeat of the one-way flows of the last bull market could face a rude awakening if prices rise at least some of the bargain hunting stockpiles amassed on lower prices.

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Since the peak is very likely to come back to market no doubt our president should look as lucky as Trump’s currency call but where gold demand was a one-way street during and after the financial crisis this new normal is bringing back to weigh action and coins and bars if new retailers struggle to adapt older players won’t lose much sleep investors, in contrast, might wonder whether a gold coin or small bar should to really qualify for the name

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