Bill Haynes, president of CMI Gold & Silver, says buyers have purchased gold and silver in massive amounts over the past several weeks, particularly in the wake of Friday's surprise dip in precious metal prices.
Speaking to King World News the veteran gold and silver dealer notes that many of the purchasers are novice precious metals investors, with many spurred into action by the weakened price of bullion.
Gold fell $40 and silver $1.40 on Friday, with the former plunging through the $1,700 threshold, following the release of upbeat employment data in the USA last week.
The chief motive for acquiring or increasing holdings of physical bullion, however, are deep concerns about the financial condition of both the United States and other OECD nations.
Haynes also forecasts major purchases of gold by leading central banks, in Asia, whose gold reserve holdings have reached perilous lows.
The Bank of China’s gold (reserve) holdings are only 1.7% in gold. Mind you, the United States, France, Germany and Italy are above 70%. The Bank of China has the world’s largest (paper) reserves, somewhere in the neighborhood of $2 trillion. The Bank of Japan, 3.2% of their (reserve) holdings are in gold, Taiwan, 5.7% (held in gold).