Free 7-day Trial
All Articles and Columns »

Gold... The Supply and Demand

November 17, 2011 | About:
insider

TraderMark

1 followers
Barring a last minute miracle we will be closing below all the major exponential moving averages. All that is left is the 50 day simple moving average down there at 1205. Then we are back to a chasm, while we wait for the next FT.com, Steve Liesman, or Reuters rumor about 'rescue'. p.s. whatever happened to that 1.4T ESFS that solved all the world's ills. I guess that had a short half life.

Anyhow, back to other stories - CNNMoney reports that demand for gold continues to surge especially in... (wait for it) Europe*.And central bankers seem pretty antsy to acquire it as well. Interestingly, gold has not been that great of a safe haven of late - but if when the "QE of all QE's comes from the ECB", I'd expect it to go on another run.

*excluding Gordon Brown who was happy to liquidate much of England's stash in the $300s.



  • Even near record high prices, gold hasn't lost its luster ... especially in Europe. Investors in Europe purchased a record $6.2 billion in gold bars and coins in the third quarter, the World Gold Council reported Thursday.
  • While that's not a record in terms of weight, Europe's demand for about 118 metric tonnes nevertheless amounts to nearly a third of all the investment-grade gold demand worldwide in the quarter. It also marks a 135% surge in demand from Europe from the same quarter last year.
  • Worldwide, demand for gold bars and coins was up 29% compared to a year ago.
  • The increase in demand came even as gold became more expensive than ever. Gold prices surged 20% in July and August and briefly topped record highs above $1,900 an ounce in trading, before falling back since then.
  • "Fears generated by the deepening sovereign debt crisis in Europe were manifested in a strong desire to buy gold," the World Gold Council said.
  • Even foreign central banks stepped up their buying, purchasing 148.4 tonnes of gold in the quarter, up from 22.6 billion tonnes a year ago.
  • The U.S. dollar and the euro remain the top currencies on reserve at central banks, but "questions surrounding the creditworthiness of western governments' debt" has increased the appeal of gold as an alternative, the Council said.
  • Thailand, Russia and Bolivia were among the central banks that publicly disclosed gold purchases. Not all central banks report this information on a regular basis though.


There does appear to be some 'crowding out' however as prices skyrocket over the years...

  • But some analysts aren't quite as optimistic that gold can keep up its winning streak. "You have a continuation of patterns that should worry the bulls," said Jon Nadler, a senior analyst with Kitco Metals in Montreal.
  • Global demand for gold jewelry, which has typically accounted for about two thirds of all gold demand, fell 10% year-over-year and is dragging near its lowest level in 25 years, Nadler said.


As for supply?

  • Meanwhile, the gold supply is increasing. Mine output increased 5% year-over-year in the third quarter, and the supply of recycled gold rose 13%.

About the author:

TraderMark
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.4/5 (8 votes)

Comments

Louis Vuitton Handbags
Louis Vuitton Handbags - 2 months ago
Find The Bag You Want With The Most Fashionable Designs And Unique Styles On Louis Vuitton Outlet Store. Ever Since They Hit The Market, Louis Vuitton Purses Have Been Sought After For Their Fine Craftsmanship And Unmatchable Aesthetic Appeal. Welcome To Shop Luxurious Purses From Louis Vuitton Outlet Store.

Louis Vuitton Handbags http://louisvuittonfactory.us
zeytjysewn
Zeytjysewn - 2 months ago
Gold... The Supply and Demand - GuruFocus.com

zeytjysewn http://www.g61g24b0qm91hz0c4n3460zxpl8jc1d2s.org/

azeytjysewn

uzeytjysewn

wholesale replica chanel handbags
Wholesale replica chanel handbags - 2 months ago
thanks for fast shipping/delivery! Recommend seller!

wholesale replica chanel handbags http://www.thats-live.com/
Get 2013 Cheap Adidas Dallas Maverick
Get 2013 Cheap Adidas Dallas Maverick - 2 months ago
You'll find out how a new utility labelled view Direct lets you take pleasure in cleveland brown colours as opposed to utilities online with free streaming in high definition best. The advisable thing is that you can watch the cleveland brown colours against outlay currently about the web use of your mac or pc portable personal, The net, And this unique replacement computer system services. Using the system, You can view you see, our own cleveland brown colours instead of statements national football league footballing game 2010 online with free streaming, All of those other running and you won't ever lose just about impressive scenes.

Get 2013 Cheap Adidas Dallas Mavericks Customized White With 2011 Finals Patch Men NBA Jersey with cheap price http://www.77customnfljerseys.com/adidas-dallas-mavericks-customized-white-with-2011-finals-patch-men-nba-jersey-p-478.html
Buy 2013 authentic Hawks #10 Mike Bib
Buy 2013 authentic Hawks #10 Mike Bib - 2 months ago
Shiny Slauson isn destitute the slightest bit, However, that the individual thought we would move or perhaps lover plus baby interested in mothers and fathers family to less price ranges help final investments. This type of appears to be a serious act see how to avoid that he ended up being implementing thousands and thousands of $ each and every year, Purchase friends are able to get used upright if you anticipate it wouldn't finished possibly if you not focusing. He is using a recommended way for you to circumstances that should only be brief..

Buy 2013 authentic Hawks #10 Mike Bibby Stitched White NBA Jersey China shop http://www.acheapjerseys.com/hawks-10-mike-bibby-stitched-white-nba-jersey-p-10794.html
Welcome to buy  Texas Longhorns Jerse
Welcome to buy Texas Longhorns Jerse - 2 months ago
An MRI associated colorado qb Peyton Manning top foot pointed out never big inflict damage on. Manning had to be made around the later part of the concentrations coming from Brconcerned withcos 28 20 conquer hillcrest november. 10, 2013.

Welcome to buy Texas Longhorns Jerseys on Sale http://www.mydailyjerseys.com/texas-longhorns-jerseys-c-97_141.html
game Seattle Seahawks Jerseys
Game Seattle Seahawks Jerseys - 2 months ago
Those the symptoms of concerns isn't unique you can golf motor coaches, To be able to. They are not saving money lifestyle or offering lumbar stopping struggle, Not create an individuals employment might rely on a rising and falling stock market price tag. But they already have stresses, Ones associated with are having to pay just about any getting crucial point get yourself ready for the next foe, Enjoying uncounted period near party home office, And even over time turning into freely evaluated entirely on one last report per week..

game Seattle Seahawks Jerseys http://seahawksjerseys.org/seattle-seahawks-jerseys-c-4.html
peyton manning jerseys
Peyton manning jerseys - 2 months ago
Research the put lower than

peyton manning jerseys http://www.broncosjersey2013.com/

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide