Update: Global Gold Bullion Demand Still Rising, Supplies Running Dry

One could come to the conclusion that investor sentiment has left the precious metal for good.

However, looking at investor sentiment for gold bullion on an international basis, the picture is very different.

Just recently, the premium for gold bullion in India hit a record $100.00 an ounce above London prices. The demand for gold is so high in India that the supply for physical gold is running out. (Source: “Gold Premiums Hit Record in India,” Reuters, October 15, 2013.)

As most of you are probably aware, the Indian government has tried to clamp down on imports of gold bullion to try and stem the outflow of their currency, which is causing the rupee to drop significantly.

This is a great example of not just investor sentiment on a local level, but of global investor sentiment as well, which gives us a better picture of the true fundamental situation. Gold bullion has fallen in price here in America; that’s because investor sentiment looking at the precious metal from the point of view of the U.S. dollar.

People in other nations are not experiencing the same type of price drop in gold bullion. In fact, in India, the rupee has dropped so far that gold prices are still near their record highs.

Will investor sentiment shift in favor of gold bullion once again versus the U.S. dollar?

Obviously, no one can predict the future, but we can all agree that the path America is moving towards is unsustainable. Just recently, China once again voiced its concerns and called for the end of the U.S. dollar as the reserve currency for the world.

With trillions of dollars of debt piling higher and higher, gold bullion may once again be seen as an alternative to the U.S. dollar—if our fiscal situation does not change.

Read More: www.investmentcontrarians.com/gold-investments/the-state-of-gold-bullion-globally/3166/