Online Coin Dealers Face Protracted Sideways Market Posted by James Randolph on May 04, 2012
Despite all the long-term fundamentals and projections from mainstream traders that place gold in the more valuable category over the coming two years, there has been a sluggishly sideways market in gold that is affecting online coin dealers.
Gold has been a hot run, particularly the past two years when panic buying and safe-haven asset buying have been at an all-time high. This high in buying was in addition to a decade long Bull Run in the gold market. Typically, in investing, it’s rare to see the two conjoin, especially for so long a period of time. However, in this case, the strength of the fundamentals of the bull are so strong that such a combination was and is still the most logical.
Right now, there is a malaise in the gold market that is primarily driven by a lackluster demand. This is partially attributed to activities overseas, particularly in the world’s largest gold market, India. But investor demand has been relatively sluggish in the United States, as well, though online coin dealers continue to do well. Of course, compared to the panic buying of the past two years, even moderate to strong investor demand seems sluggish for the gold market.
Gold is currently down 1.6 percent on the week, which we can mostly attribute to this lack of demand. The market appears to already be in a summer state of mind, which may portend an overly active trading season to come. What we’re witnessing now is certainly a calm, but it is difficult to project with any accuracy what follows.
The current doldrums of the gold market, if they may be called that, could actually be exactly what the market needs in order to recalibrate itself and shake off some of the smaller coin dealers who could not satisfy as much of the public need. Our working, retiring, and investing Americans need serious certified dealers who can tailor their financial needs.
Demand will resume again in the gold market, though the instigating factor is hard to foresee. A gradual lift would be preferable to a “gold finger” or “fat finger” sell-off or panic-buying news from overseas. It’s most likely we’ll see a very rapid turn, however, particularly in this market. Online coin dealers will be able to contend most fairly with that turn when it indeed occurs.