Investors should be aware that it is the love trade that drives gold demand, said U.S. Global Investors CEO Frank Holmes, adding that the North American market could be waking up to this soon.
“There are two drivers to the price of gold – the fear trade, which dominates the psyche of North Americans and the love trade, which [is present] in China, India, and the Middle East. Sixty to seventy percent of all gold demand is based on love trade, which is a key long-term factor,” Holmes told Kitco’s Daniela Cambone on Valentines Day.
W Resources PLC (LON:WRES) is building a European mining company focussed on delivering long term production of tungsten, a key strategic metal with strong market fundamentals.