Gold Demand: Is It Better To Be Feared Or Loved?

When it comes to gold, prices are driven by either love or fear, said Frank Holmes, CEO of U.S. Global Investors.
“There’s two drivers to the price of gold: the fear trade, which dominates the psychic of North Americans, and the love trade, which is China, India, known as ‘Chindia,’ the Middle East; 60% to 70% of all gold demand is based on love, and that is the key long-term factor,” Holmes told Kitco News.
Holmes noted that behind the “love trade” is growing wealth, measured by rising gross domestic product per capita. (show less)

When it comes to gold, prices are driven by either love or fear, said Frank Holmes, CEO of U.S. Global Investors.
“There’s two drivers to the price of gold: the fear trade, which dominates the psychic of North Americans, and the love trade, which is China, India, known as ‘Chindia,’ the Middle East; 60% to 70% of all gold demand is based on love, and that is the key long-term factor,” Holmes told Kitco News.
Holmes noted that behind the “love trade” is ... (read more)

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