Physical Gold Demand “Very, Very Strong”

Mark Yaxley: Physical Gold Demand “Very, Very Strong” — Just Not in the Westyoutu.be

Physical demand for gold is “very, very strong,” but Western buyers seem to have missed the memo.

Speaking to the Investing News Network, Mark Yaxley, managing director of bullion dealer SWP, said that people in eastern countries like China and India are taking advantage of low prices to snap the yellow metal up.

But the same can’t be said for Western investors — in general, they focus on the stock market and assets that generate interest and dividends, often foregoing gold and other tools for wealth preservation.

“I think that maybe (western investors aren’t) used to dealing with high levels of prolonged inflation, and we haven’t quite figured out that gold really is something that can help in that conversation,” Yaxley said.

“My advice … to my clients, who are mostly Canadians and Americans, is maybe you should be mirroring Eastern investors and taking advantage of these dips at this price level,” he added, noting that westerners tend to wait until prices rise to buy.

Yaxley also shared his takeaways from this year’s London Bullion Market Association (LBMA) conference, held in mid-October. Event attendees included refiners, wholesalers and financiers, and sentiment on the whole was positive. Precious metals storage companies participated as well, and Yaxley said he knows of about half a dozen that are looking to increase their capacity.

“Really what this is — the risk that these business owners are taking — is directly reflective of the amount of physical metal that’s going into storage, which affects the overall strong demand in the industry right now,” he said.

Watch the interview above for more from Yaxley on gold, as well as his takeaways on the LBMA event.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.