Gold Bullion Shines In The Light of Global Gold Developments

In the past year Gold has outperformed all the major currencies. Silver has fared even better. Gold rises in the wake of continued economic difficulties facing western nations such as the US and UK that are shackled by debt and teeter on the edge of further economic stimulus requirements. Gold bullion is not just a safe haven refuge or inflation hedge. It is increasingly being seen as a hard currency alternative to insulate against monetization and currency debasement.

As a new development in recent months, gold bullion coin vending machines have been making an appearance in different regions of the world in parts of Europe, the Middle East and now the US. The gold bullion coin machines dispense coins similar to gold wrapper chocolate bars and are functioning in hotels and airports [1]. They have a built in mechanism that updates to the current price of gold and security controls in place to prevent money laundering. It will be interesting to see what kind of traction the initial machines gain in Vegas before possibly spreading to other areas of the US.

New York, London, Hong Kong and Singapore Gold Vaults

In other regions of the world, gold bullion hubs are beginning to emerge. It started in Hong Kong last year [2] and now includes the recent gold vault in Singapore [3] and the reopening of a gold vault in New York. There are other reports of investment banks looking to establish London gold vaults [4].

Growth in gold bullion ownership is also accelerating via increases in gold vault holdings via commercial programs; established to meet growing demand for gold bullion investing and to cater to the desires of individuals looking to trade gold bullion 24/7. Gold and silver bullion coin sales are also buoyant, subject to periodic supply shortfalls, despite strange figures that appear in the media from time to time.

Much discussion takes place over whether gold is the ultimate bubble. Price comparison takes place on the basis of past price moves. Some of them deserve respect for valid points but greater consideration should be given to current developments and new emerging trends. These indicate part of what is driving global gold demand. In the meantime, gold continues to make new highs and shine in the light of these global gold developments.

[1] Gold sold like chocolate from German vending machines

[2] Hong Kong recalls gold reserves, touts high-security vault

[3] JPMorgan Singapore Bullion Vault Opens Wednesday

[4] JPMorgan reopens gold vault