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Post by jeffolie on Feb 16, 2009 19:43:12 GMT -6
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Post by unlawflcombatnt on Feb 16, 2009 22:11:53 GMT -6
www.gold.org/assets/file/pub_archive/pdf/GDT_Q3_2008.pdfHere's some information from the World Gold Council that goes up through the 3rd quarter of 2008. According to them, the $-demand for gold increased +51% from Q 3 2007 to Q 3 2008. (From $21.065 billion to $31.762 billion). [ See page 4] It would appear that, at least through the end of Q 3 2008, the total demand for gold was still rising. In fact, most of this increase came in the 3rd quarter of 2008. The WGC's report for Q 4 2008 isn't available yet. They attribute the increased demand for gold to the collapsing world economy. If that really is the cause for the increase, then demand for gold should only increase in the near future. Time will tell.
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Post by unlawflcombatnt on Feb 17, 2009 2:31:27 GMT -6
The "commodity online" site is pretty interesting. They've got a lot of articles that are bearish on gold, and a lot that are bullish. According to the article below, ETF demand for gold has skyrocketed. It's contributed greatly to the most recent upticks in price and/or demand. In the case of India, their currency has apparently devalued considerably, making gold more expensive -- reducing the quantity of gold purchased for jewelry. But the worldwide increase in investment demand for gold, especially through ETFs, has largely offset the decline in gold demand for jewelry. from commodityonline.comwww.commodityonline.com/news/Gold-ETFs-hold-more-gold-than-Swiss-central-bank-15207-3-1.html" MUMBAI: Across the world, most commodity markets are down in the dumps because of the economic slowdown and crude price crash.
When all other commodities are down with little prospect for a quick price recovery, the eternal favourite of investors is gold. Proof for that is clear when you check the data. Price of the yellow metal has appreciated steadily, despite reasonably strong dollar and overall weak sentiment in commodity markets.
Gold price rise is despite decline in jewellery demand. There has been a dramatic increase in appetite for physical gold among investors.
Total exchange traded product gold holdings have risen at their fastest ever rate so far this year, growing by 200 tonnes to almost 1,400 tonnes. Interestingly, gold ETFs now hold more gold than the Swiss central bank! Gold held by ETFs now account for more than 40% of identifiable gold investment globally.
The biggest gold ETF holder is the NYSE-traded SPDR Gold Trust that hit a record high of 894.72 tons last week, an increase of 14% above the month-earlier level. Other gold ETFs around the world together held over 480 tons.
Gold coin sales are also soaring with sales by the US Mint reportedly running at double their levels a year ago. The uptrend in gold may continue as long as investment buying remains sufficient to offset weakness in jewellery demand....
In the short-term, however, in the event safe haven buying eases for any reason, gold prices could come under pressure especially in a deflationary environment or during bouts of dollar strength.
While the market is likely to struggle at or near $ 930 per ounce, there is expectation that it will ultimately break, as the metal continues to shine on an absolute and relative basis.
Rising international prices of gold and weakening Indian rupee have combined to push domestic market prices (in India) through the roof. Gold 10 grams reached an unprecedented rate of Rs 14,900. Given that higher prices lead to demand compression in price sensitive markets such as India, physical demand for household consumption is reduced substantially.
India’s gold imports are sure to shrink further as high prices show no sign of abating." www.commodityonline.com/news/Gold-ETFs-hold-more-gold-than-Swiss-central-bank-15207-3-1.html
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