Scrap Gold Bullion "Can't Stop Rallies"

STRONG FLOWS of scrap Gold Bullion are being reported as the price reaches new all-time highs, but that won't prevent the price from going higher, according to a leading analyst.

"Scrap supply is certainly visible at the refineries," says Dr. Edel Tully, precious metals at Swiss bank UBS's London office, referring to metal sold by jewelry owners, industrial users or investors looking to raise cash which finds it way back into the wholesale market after being smelted and refined into large Gold Bullion bars.

"But we don't believe [scrap selling] is at levels which can on its own curtail gold rallies."

Separately, Tully told Reuters on Wednesday, the Swiss bank's sales of physical Gold
Bullion to India are currently running above last year's levels.

Concluding with the Hindu festivals of Diwali and then Dhanteras next month, this is the peak season for Buying Gold in India, the world's No.1 consumer market.

"The Gold Investment market is very bullish," agrees senior commodities analyst Walter de Wet at South Africa's Standard Bank.

"Without scrap and other gold selling in the physical market, the Gold Price could arguably have been much higher," he wrote in Standard's daily report on Wednesday.

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