Tuesday, May 23, 2006

Who Is Buying Gold?

Kitco analyst Roger Wiegand, discusses global gold markets, reflecting that, "China, India, Japan and in greater amounts the Middle Eastern oil barons, are all prolific gold buyers. Several We heard of a report last week which was not verifiable, that only about 1% of the general markets buying public is invested in gold or gold stocks. We know the number is low but cannot be certain it is that low at this time. Nevertheless, investment reports and market-chart behavior indicate most retail street investors are thinking buy and hold forever while watching their mutual funds go into the dumpster."

Wiegand furthers that, "Central banks were dumping gold with both hands at $250-$450 and now are closet buyers. Those with the opportunity to sell more under the international gold selling agreements are holding back not selling their quotas or prearranged amounts."

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