Posted on Feb 14, 2020

Money Metals Exchange

In June, the gold price finally broke above the $1,400 level after five long years. So, who was responsible for pushing the gold price to a new high since 2013? Well, if we look at the data, it most certainly wasn’t the physical gold investor. And, according to several dealers I spoke with, physical gold retail investors took advantage of the $1,400+ price to sell metal rather than be big buyers… which I found quite interesting.

However, if we understand the psyche of the smaller retail investor, it’s not all that surprising. The retail physical gold investor tends to buy more metal when there is fear, financial instability, or extreme price volatility in the markets. So, if it wasn’t the physical gold investor responsible for the $1,400+ price move… then who was? It was the Paper Gold Buyer.
Get quote
Message sent. We'll get back to you soon.