Gold Price: "We Ain't Seen Nothing Yet"

Gold soared to a new record price of US$1,190 overnight. Where to now? NZ Mint’s Mike O’Kane says ‘all the signs point to we ain’t seen nothing yet’:



“I believe we’re on track for the anticipated $1200 - $1300 high. We may still see a small pull-back in price before moving forward again.



“This week we’ve seen a dramatic increase in buying. Sales have been almost on par to what we were doing prior to the recession kicking in last year.”



http://www.bloomberg.com/apps/news?pid=20601081&sid=aLrknf1puOXI



The above link shows the strong demand for physical gold. The World Gold Council recently reported that global third quarter demand was 15 percent higher than the second quarter. Even Krugerrands are not available at the moment, so we could quickly see a domino effect where other gold and silver bullion-priced products also become sold out.



http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6646753/HSBC-starts-gold-rush-out-of-its-vaults.html

The link above takes us to an article on British bank HSBC telling retail customers they have to get all their gold out of the bank’s storage by July 2010 because of an increase in demand for physical gold storage by corporate clients.