Ron Paul Is Relaxed About Gold's Slump (Mining.com)
Gold bug Ron Paul recently weighed in on last week's events. Paul has taken gold's abrupt decline in the past week with calm, asserting that the key issue is the value of the dollar and not the sharp movements in the precious-metals market.
According to Mining.com, the former US Congressman was unnerved when asked if he was worried about this week's gold-price collapse happening again. "It was an abnormal market phenomenon, but obviously the weak holders had to get out, and the strong holders are back and buying."
We couldn't agree more.
Demand for Krugerrands Skyrockets (Mineweb)
As we all know so well, the gold price dropped to its lowest level in two years earlier this week due to a variety of factors, including the possibility that Cyprus might sell some gold in order to help finance its bailout.
However, this has not been an altogether one-sided story, as the demand for physical gold - such as Krugerrand gold coins - shot through the roof during last week's drop, as investors capitalized on the lower gold price.
Jewelers Head for Gold as Investors Fled (BullionStreet)
A slump in the gold price also led to a jump in gold jewelry sales in India. Seemingly, while the price decline last week made the metal unappealing to portfolio investors and money managers, gold retailers in India struggled to cope with the demand, as shoppers rushed to snap up gold ornaments ahead of wedding season. The article states:
"Jewelers are eyeing incoming wedding season and Akshaya Tritiya, an auspicious day to buy gold as per Hindu mythology, to boost their sales in the global market, as the gold price fell below US$1,400 per troy ounce for the first time in 15 months."