Gold slid downward again today, partly due to concerns over reduced physical demand from China and India.
(1888PressRelease) December 29, 2011 - MIAMI, FL - There has indeed been reduced demand from India and this has been for two reasons. Firstly, the exchange rate is making gold very expensive to buy in rupees; secondly, however, the period between mid-December and mid-January in the Hindu calendar, Karmas or Karma Su, is considered inauspicious for any kind of buying, or for starting any new venture. One can assume that, once this period is over, gold buying will increase again in anticipation of the Lunar New Year in late January.
China, on the other hand, is attempting to cut down on the illegal importation of gold; ordering the closure of all exchanges, bar two official exchanges in Shanghai, to cease operations. However, the two Shanghai exchanges can deal with the domestic demand for gold bullion.
"Apart from a feared drop in physical demand from Asia, we are dealing with normal end-of-year profit taking and book squaring," says Bill Hionas of Pan American Metals of Miami. "Many investors are hanging fire until January now. The Lunar New Year in January is likely to result in a spike in physical demand from Asia also."
Investors should see the current dip in the price of gold as a buying opportunity; prices below $1600 represent a bargain. Pan American Metals of Miami's team of expert investors, traders and account executives is available to assist clients with their precious metals bullion purchases.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.