If you closely follow the gold market, you’re aware that there has been a slight pullback in the price of gold over the past couple of weeks. While the drop has provided some great buying opportunities in the U.S., you may be surprised to hear that the price of gold is at or near an all-time high in other parts of the world.
Abe, Japan’s new Prime Minister, has made no bones about his desire to inflate Japan’s currency in hopes of stimulating the world’s fourth largest economy. The inflationary efforts by Japan’s central bank has resulted in a devaluation of Japan’s currency and a spike in the price of gold. Over the past two years, the price of gold, when valued in yen, has increased 36%, and just hit an all-time high in February of 155,000 yen per ounce of gold.
While Japan is the most extreme case, other countries are also seeing a large spike in the price of gold. Other countries in which the price of gold has recently reached an all-time high are Brazil, Iceland and India. It’s not surprising that the price of gold in India is at elevated levels due to the country’s affinity for gold, but some of the other countries in which gold has reached an all-time high are a bit surprising.
We have personally seen high demand lately for Chinese gold pandas due to high levels of buying in mainland China. Demand for gold in China appears to be at or near an all-time high, which has driven up the price and demand of Chinese gold pandas, China’s sovereign issued gold bullion coin. Historically, at least in the U.S., Chinese gold pandas have not been one of the most desired sovereign gold coins.
Click here for further details on the all-time highs in gold being realized outside of the United States. Could the U.S. be next in line for a huge bull run? Only time will tell, but the inflationary policies of the Federal Reserve will likely result in a strong bull market for the months and years to come.