Gold and silver prices have dipped down to 2 year lows. This would suggest that everyone has turned a net seller for the two metals. But the world's largest producer of gold and silver coins has seen demand going up. The head of the US Mint has recently stated that it is seeing unprecedented demand for gold and silver coins. To the extent that the Mint is rapidly buying all the coins that its suppliers can make. This suggests that while prices of paper gold may have dipped, the price of physical bullion is bound to go up. When supply is limited and demand is going up so sharply, prices are bound to follow. And when prices of the metal go up, then prices of the paper metal should go up too. After all paper gold is nothing but a function or derivative of physical gold. This is why investors would do well to hold at least 5% of their portfolios in gold.