Despite new challenges, Gold remains strong

bullion vault chart 5 years 300x150 - Despite new challenges, Gold remains strong
The sharp climb of Gold in recent years

As Gold remains at the forefront of precious metals into the third quarter of 2011, market observers have periodically suggested that the bull market will decisively falter in the near future.

However, little real evidence has emerged to support such negative prophecies, in spite of challenges to the current strength of Gold.

According to the Independent of 20 May, demand for Gold coins and bars was up 52% to 366.4 tons – a sign of stalwart confidence in the security of the metal, as well as the continued rise in interest in Gold coins in particular from the wider public.

Moreover, despite the US Dollar regaining some ground, this did not have the significant effect on the price of Gold that sceptical speculators might have expected.

Perhaps most damning to those who predicted a Gold bubble are recent reports that Gold has benefited from rising inflation in China. Chinese interest in Gold coins, bars and jewellery as a potential safe haven has continued to drive prices. Against all odds, Gold appears to be proving a remarkably tenacious store of value.

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