According to Bernard Sin, the head of currency and metal trading at billion refiner MKS SA in Geneva stated that “physical demand is extraordinary.” After prices slumped to $1,321.95 an ounce Tuesday morning, prices are on the up climbing today to $1,412.40 an ounce. This tends to happen when gold prices plummet, physical gold price increase as investors become more interested in purchasing it.
To put it in perspective, a few days ago all gold mining stocks were on the decline. Today, all of them are up with Franco Nev Corp. at $37.08 up nearly 7% and Gold Resource Corp. up just over 9% to $9.45. When it comes to ETFS, Gold Miners ETF Market Vectors are up 3% while Junior Gold Miners ETF Market Vectors are up 2.44%.
Gold is expected to continue to increase until it eventually levels off at some point next week.
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