Tag: gold demand

The (Mis)Calculation Of Chinese Gold Demand

The (Mis)Calculation Of Chinese Gold Demand

According to Alasdair Macleod, it appears that the WGC’s figures substantially understate the true position. Furthermore, any analysis of gold demand will fail to account for the increase in gold ownership not constrained by national boundaries.

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Gold Demand – The Greatest Misunderstanding In The Gold Sector

Gold Demand – The Greatest Misunderstanding In The Gold Sector

The demand for physical gold has been driven mainly by the East; Western large investors have been selling gold signaled by the mass exodus from the GLD ETF. Besides, newly mined production only accounts for some 2% of total above-the-ground gold. The new production is low compared to a very high stock; the technical term for this is “stock to flow ratio.” Precious metals are unique commodities from the point of view that they have a very high stock compared to their flow. Gold demand and gold production are no primary drivers of the gold price. Gold demand merely points to a shift in gold ownership from one hand (read: hemisphere ) to another.

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China Stimulates Gold Demand, Becomes World’s Largest Gold Importer

China Stimulates Gold Demand, Becomes World’s Largest Gold Importer

China’s central bank is planning to increase the number of firms allowed to import and export gold and will also ease restrictions on individual buyers of the precious metal, according to a draft policy document issued on Monday. The proposed policy change could boost imports by China, which is expected to overtake India this year as the world’s top gold consumer, and where gold normally trades at a premium to London spot prices.

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Demand For Gold Bars/Coins Make Up For ETF Outflows In Q2 2013

Demand For Gold Bars/Coins Make Up For ETF Outflows In Q2 2013

During the second quarter, gold demand accounte for 856.3 tonnes. That’s 12% less than the same quarter a year ago. A wave of outflows from ETFs was the principal cause of the decline, although this was mitigated by record demand for gold bars and coins. Continuing the theme of the previous quarter, demand for jewellery grew significantly to reach multi-year highs. Supply declined by 6%, the primary reason being a marked contraction in recycling.

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High Premiums Reflect Strong Global Demand For Physical Gold

High Premiums Reflect Strong Global Demand For Physical Gold

Demand for physical gold remains extremely high all over the world. After the flash crash of mid-April which statistically occurs once in a billion years the flight to physical gold and silver has been unseen. Premiums had risen to extreme levels. In fact, the premiums are still extremely high, reflecting the continuing high demand. Only in India and Hong Kong have premiums come down from their highs earlier this month.

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