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HSBC sees global gold demand rising 15% in 2015 with central banks BUYING 400 tonnes

After a couple of painful years of gold price action for the bulls, 2015 might be the year that things start going in the right direction for them.

HSBC has come out and said that it expects to see global gold demand to surge by 15% – and this was before the action by the Swiss central bank.

From Bloomberg:

Global demand may rise 15 percent to 4,127 metric tons this year, analysts James Steel and Howard Wen wrote in a report dated Jan. 14

And its the good ‘ol ‘Asian gold demand’ that might aid the gold price:

Rising Asian demand for gold may help bullion prices to recover after testing new lows this year, Barclays Plc said in report this week…based on anticipated demand from China and India, where long-term economic and demographic trends argue for increasing bullion demand. The two countries account for about half of global consumption.

HSBC also went on to say they expected central banks (***cough*** Russia and China ***cough***) to not only be net-buyers of gold in 2015, but to raise their purchases by some 33%:

The accumulation of gold by central banks is likely to continue this year, helping support prices, the HSBC analysts wrote. Central banks, which have been net buyers since 2010 after two decades of sales, are forecast to add 400 tons this year after purchasing about 300 tons in 2014, according to HSBC.

So just why are central banks predicted to increase their gold buying when the West is meant to be in a full-fledged recovery after years of ‘temporary and emergency’ interest rates at essentially zero?

Is it perhaps because the underlying economies of the West haven’t been fixed at all, and rather, the debt has exploded in these countries thanks to money printing? Giving rise to central banks in other parts of the globe a need to hedge against the money printing policy of the West with gold – you know, ‘just in case’?

Link to this article: : http://www.goldmadesimplenews.com/gold/hsbc-sees-global-gold-demand-rising-15-in-2015-with-central-banks-buying-400-tonnes-12802/

Posted by on Jan 16 2015. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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