dealer Mike Fuljenz examines the market fundamentals
that he says indicate gold should recover from its latest market lows.
Metals Market Report released Nov. 10,
Fuljenz analyzes seasonal trends, rising physical demand, China's
recovery and metal supplies.
gold prices are low, coin buyers return to the bullion coin
market," according to Fuljenz. "When gold rose in October,
U.S. Mint sales
were down from their summer highs. But when gold prices fell last
week, the physical buyers returned. The U.S. Mint sold 36,500 Troy
ounces of Gold American Eagles last week (the first week November),
and 1,079,500 troy ounces of the silver American Eagle."
also believes newly mined gold supplies are near their peak.
for new gold peaked 20 years ago in 1995, and it takes an average 20
years to bring a new discovery to peak production," Fuljenz says.
"Despite the rising price of gold from 2001 to 2011, very few
profitable and economic discoveries have been made in the last 15
years. In most new mines, there is only one part gold per million
parts of dirt, rock and other worthless ore being mined deep below
ground in remote locations."
full report can be found here.