The biggest gold bullion companies have been buying up more and more gold, raising the price of the metal to new heights, according to analysts.
The latest wave of gold-buying began in late 2014, and it accelerated last year with a spate of mega-bullion sales.
In January, gold-mining giant Goldcorp bought 1.4 million ounces, or about 0.5 tonnes, at a price of about $1,600 per ounce.
That followed the February 1 sale of about 6,000 tonnes at $1.50 per ounce and the March 1 sale by the Anglo American group at about $4,000 per ounce for gold.
Goldcorp’s acquisition was followed by the August 1 sale to the world by private-equity giant Carlyle Group LP.
Gold-mining giants such as Anglo American and AngloGold Ashanti also bought gold in the past two years.
Goldcorps also bought about 1.1 million ounces at $4.25 per ounce in March and $2.75 per ounce last month.
Last month, Anglo American bought 1,600 tonnes at about a dollar a pound and bought gold from the Chinese government for $1 billion.
The Goldcorps deal is likely to boost Goldcorpmates share price, and the Chinese gold purchases are likely to increase the value of the Chinese market, said Robert Erskine of UBS Securities.
Gold prices are also expected to rise for several months to come as the Chinese economy slows down and the government continues to clamp down on gold trading.
“It will likely boost Goldstock and help to bring gold back into mainstream gold prices,” Erslum wrote in a note.
The recent Chinese gold moves come at a time when the world is still in a recovery phase and gold prices are still trading at new highs.
But in the short term, gold prices will continue to trade at new lows, which will only worsen the economic and financial problems of many people and countries, Ersrum said.
Gold will likely continue to fall, as will gold prices in emerging markets and the rest of the world, Ears said.
Erskines prediction is that gold prices would likely remain below $2,000 for the next several years.