I'd imagine what he means is that the ease of entry into the market by way of ETF (vs buying and holding real gold) has probably made the gold market somewhat easier to speculate against.
In that case, "real" demand is driven by the traditional motivations i.e. as a store of wealth, hedge against inflation etc.
The less "real" demand then would be people buying gold to make a quick buck on a rising market.
I thought maybe that was what the poster was driving at but I guess what confused me was the implication that this might be a bad thing?
Certainly if I was investing in Gold from a long-term safety perspective, I'd be concerned if a significant element of the current price could be apportioned to speculation..... because we all know how speculation can drive a market a little bit loco....
On the other hand, if I were a gold speculator, I'd welcome all the other spec's with open arms..... as long as none of them sell up until after I do!
If I wanted to sell one of them without faffing about on ebay, what would I be best off doing?
Why not sell back to Gold Investments? (Although they do have a minimum purchase amount of €3,500, so they wouldn't buy just one from you.)
Taking a discount on a coin that usually fetches a 7% premium on sale is a bit too much of a bad move for me.
Think you'll have to anyway. Nobody (including Gold Investments) will pay a retail investor the spot price, especially not for a single ounce.
Actually ebay punters do pay above spot for krugerrands quite a lot.
... gold still represents the ultimate form of payment in the world. It's interesting that Germany could buy materials during the war only with gold. In extremis fiat money is accepted by nobody and gold is always accepted and is the ultimate means of payment…
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