Whilst the West becomes complacent about gold, China, India and central banks will buy 90% of all gold that's produced during 2014. This is an amazing statistic supplied by ETFS Securities - and it underlines Asia's enduing love affair with gold, despite apathy amongst Western investors. But it shouldn't be too surprising, as data for 2013 showed a similar pattern - as China, India and the world's central banks absorbed more than 80% of global mine supply.
So true Gavin. We're so Fed obsessed when it comes to Gold - but real physical demand isn't determined in the US or London. If Western investors (mostly via ETFs) do change their tune, and even want 5-10% allocations to metals - then things could get very interesting in the PM space.
Absolutely Jordan, the shift in gold from west to east will continue. Investors in the west are fuelling property and equity booms with all of the cheap money that's been made available by central banks as they chase returns, with a lack of appreciation of risk.