For investors, gold bullions have always been in high demand. However, the demand for gold bullion just doubled with global news taking the forefront. The global news which shook the whole world was when the United Kingdom decided to move away from the European Union. As soon as the news of UK’s withdrawal from the European Nation or European Union (EU) was announced, there was a surge in the demand for gold bullion by China.
Investors who trade or buy gold bullion must be well aware of the fact that China is one of the biggest buyers of gold. With Great Britain’s decision to leave the EU, it sent a shockwave in the global market. This ultimately drove the demand for safe investments. Assets like gold bullion or silver bullion is considered to a safe investment which can be easily turned to during economic crisis.
Point Presented By World Gold Council
If one takes a look into the statement provided by the World Gold Council, one might have notices, that due to Brexit, there was 21% increase in the demand of gold during the first quarter of 2016, in comparison with the first quarter of 2015. Starting from individuals to investors started to buy more amount of gold believing that gold bullion will stay in the near future.
In fact, studies showed that the craze to buy gold bullion saw a steady increase and everyone preferred to buy gold from China. The reason behind this decision is pretty simple. China is considered to be the world’s physical buyer of gold and it has almost 70% to 1,800 tons of gold. Thus, China is the world’s fifth largest stockpile of gold bullion.
The Demand of Gold
Another important reason for the demand of gold is that it is considered to be a safe haven during turmoil. During many instances that biggest gold markets like China and India bought very little gold jewelry when the price of gold remains high. However, when price becomes low peoples start to purchase jewelry in huge amount.
It has been highlighted that many people also think to buy gold bullion such as coins or bars as it can be used to design one’s own jewelry. It has been seen that the taste of people is changing very fast. People prefer to buy new age trinkets. The designs might matter more than the quality. Thus, after buying bullions one can easily customize their trinkets.
When you plan to purchase gold bullion from a bullion dealer then one should always look out for a reliable store or dealer. It is a known fact that reputed dealers can provide best rate for the gold bullion.
However, before you buy gold bullion, always get a proper idea about it. You should look out for the mark on the gold bullion which mentions its purity level. A good dealer would happily show you the details inscribed on the bullion.
A good bullion dealer should be one who keeps the entire process transparent. Make sure to buy gold bullion from a reputed dealer who can provide a guarantee and warranty about the item. Here are some great insights on investing in weaker dollar!