A better "test" of the strong retail physical demand for gold is to look at the premiums the better bullion dealers charge over the spot price of gold, to the public.
And right now those premiums are rather high, as low prices for gold have fired up the public (worldwide) to buy gold coinage and small bars at the retail level. Dealers are raking it on the premiums as demand is high at the retail level.
The Sovereign is an odd bullion coin, having only .2354 oz. of gold, and production runs are fairly limited which is why they stock out so often. I think only Brits buy them up, honestly. If someone wants random year sovereigns, there are lots (and lots) of them available.
Some of the limited addition Jubilee Sovereign coins are really neat for the numismatic enthusiasts out there, but people don't buy Jubilee sets for the gold content.
The Royal Mint's Britiannia is offered in multiple sizes (oz. down to 1/10th oz size) and is a better deal than sovereigns. The pre-2013 Britiannia design is a really neat bullion coin. However, most British bullion coins are more pricey in general, than their US or Canadian counterparts, as dealers scalp you on the premium over spot more so on British bullion coins than Eagles or Leafs (or Credit Suise bars). Britiannia's are only 22 carat, however, so that makes the Canadian Maple Leaf the cheapest fine gold (24 carat) coin that money can buy.
I pick up some coinage, now and then, as it beats having to surrender the cash to my the wife.....figure if I spend it, she can't, and freaking shoes and clothes don't generally appreciate much in the long term contrary to what most women tend to think.....
"Shakes head"....Ultra, you continue to surprise me with the breadth of your mining and metal related knowledge.
Thanks for the color here.
Also, there is a huge scandal brewing in India right now. A large, Madoff like ponzi scheme has bilked at least tens of thousands of people out of their total life savings. This will cause ripples.
Google :"Bloomberg India Savings Deposit Scam Collapse Leaves Thousands Penniless".
This news should lead to increased demand in India this year for gold, and even silver, despite the Indian government's efforts to curb retail gold buying.
And if that is the case it will contribute materailly to a supportive effect on the gold market this year.
Ultra, appreciate it. Thanks. I have been picking up gold chains over the years in the Istanbul gold market. They sell mainly 18K. The chain is weighed and then sold for the price of gold plus a small amount added for workmanship ($30-$50). A nice 1 1/3 oz chain has 1 oz of gold. When you turn the chain back in they weigh it and give you the price of gold. Ultra, I think your wife needs some necklaces. You will both be happy!