Asian Bullion Demand

Posted by Mark Jasayko, CFA, Portfolio Manager

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McIver Wealth Management Consulting Group / Richardson GMP Limited
This is where most of the physical bullion buying is occuring

Earlier today I saw the accompanying graph that shows a map of the world and that most of the population is contained within a circle over Asia.  It then dawned up me that most of the bullion that is currently being purchased is also occurring within this circle.

The developed world experienced a post-bullion-ETF-craze hangover over the last couple of years.  However, in the developing world, gold is still seen for its “store of wealth” qualities where the intention is to hand it down from generation to generation.  These buyers are effectively immune to the debate on how the price of gold should act vis-à-vis current global monetary policies and current inflation levels.

In China, India, and other countries in the region, people see physical gold as being “on sale” and are buying opportunistically.

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