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From Ryan Denby, CEO of Austin Rare Coins & Bullion
Friday is here, and I wanted to share a few quick thoughts on what’s happening in the metals market, and why the recent dip in gold may be a healthy and welcome pause after an incredible run.
After reaching record highs earlier this month near $4,400, a much-needed correction took place this week - a natural consolidation after a powerful rally that began last summer. Keep in mind that over the past 12 months alone, gold and silver have risen over 40%, even after the recent pullback.
The fact that this has occurred during a time when stocks are setting all-time highs is rather unusual, hinting that gold is increasingly being viewed as a true alternative to the dollar and a safe-haven asset. It raises an important question: what happens to pricing and availability of precious metals when there’s a genuine crisis of confidence?
In our opinion, the long-term picture for metals remains strong. Central bank reserve purchases have exceeded 1,000 tonnes of gold in each of the past three years, according to the World Gold Council, and early estimates suggest 2025 will be no different.
So far this year, China, India, and Poland have been among the most active central bank buyers, continuing a multi-year trend of strengthening reserves with physical gold. Even at today’s higher price levels, central banks continue to aggressively buy, reinforcing that demand for gold is driven by strategic necessity - not speculation.
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