Gold Price Trends and the effect of Private Investors

The Gold Price has risen steadily over the last six months as everyone scrambles for a safety net or hedge against the current economic crisis. Large amounts are being invested into Gold ETF’s and Gold Mining Shares are starting to move upwards, although they seem to be slightly behind the Gold Price.

Gold dealers are regularly reporting that they are sold out of coins such as The American Eagle and The Canadian Maple, collectors coins are also selling as buyers widen their search for Physical Gold.

What I am wondering is, is that when the economic crisis worries subside, how much of the gold supply will be sold, people getting out the Gold ETF’s seems likely, but maybe people will be more likely to hang onto the coins and bullion that has been bought. I can imagine that unless the cash if needed to be freed up, that coins will stay in houses/safes/banks almost as collectibles and an ongoing hedge.

I have no idea how much coin sales make up of the current levels of Gold Investment, probably a fairly small percentage, but maybe it will help to hold the keep gold price up.