The fall in gold prices: let’s take advantage of it!

The fall in gold prices in recent months has prompted Asians to buy even more of this precious metal.

Gold is traditionally seen in India and China as insurance against currency fluctuations and inflation.

The Perth Mint, which produces 10 percent of the world’s gold bar production, is closely monitoring gold prices.

Bron Suchecki, strategic director of the Perth Mint, told Radio Australia that since the massive price correction earlier this year, the market is increasingly demanding investment gold.

The premiums, this famous supplement to the official price of gold in London, has tripled since February 2013.

Asians have a different approach from Westerners

They buy mostly in times of falling prices, whereas western buyers want to buy when the price is rising and are more confident when the price is rising.

China is Perth Mint’s main customer for one-kilogram ingots. In Europe, these are melted down to make smaller ingots as fewer and fewer Westerners can afford to buy a 40,000 euro gold bar.

The Perth Mint sells five to six tons of gold worth US$300 million per week. Since February the price of gold has fallen to its lowest level in three years and demand for the precious metal rose 53 percent in the second quarter of this year, according to World Gold Council data.

If you want to buy gold yourself

Once you know what you want to buy as gold, you will need to know the price. Metal prices fluctuate from minute to minute. You can find the current price of an ounce of gold in New York City on the home page of our website. We also update the price of an ounce of gold in London. Both prices are displayed in the right column.