The World Gold Council has said today that total gold demand in Q2 stood at 964 tonnes, 16% lower than the same period last year as consumers and investors...
The World Gold Council has said today that total gold demand in Q2 stood at 964 tonnes, 16% lower than the same period last year as consumers and investors pulled back. But elsewhere the council reports that miners have produced an additional 3,096 tonnes over the past year. That means there must be piles of unwanted gold somewhere. The effort by the industry boosters to make out that gold is a normal product whose price is dictated by changing market balances ends up with them making some ludicrous statements. Because gold is an investment product, all of the available supply is owned and, if someone wants to sell, there will almost certainly be a buyer. The only way less gold can be owned is if all the mines stop producing and existing gold is mysteriously destroyed.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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