Can Gold Survive Without India, China Buying?

Oct 14, 2016
Guest(s): Frank Holmes 
The fourth quarter will be critical for seasonal physical gold demand, with India gearing up for Diwali at the end of the month, a celebration where the metal is traditionally gifted. Then China, the world's largest consumer of the metal, prepares for the Lunar New Year, another key buying opportunity for gold. In the second quarter of 2016, India and China accounted for 44% of gold jewelry consumption globally. The two countries saw higher demand for gold jewelry than all of Europe, South America, Africa and North America combined. In India, analysts are expecting the subdued prices, the good monsoon season and the upcoming festivities to boost sales. Frank Holmes, chief executive officer for U.S. Global Investors, expects both celebrations to be price supportive, despite Asian demand having been sluggish so far this year. Holmes said gold investors should also pay attention to some key U.S. data out next week, which includes regional manufacturing data for October, housing sector numbers and the September Consumer Price Index report.