To prosper, gold needs China and India more than fear: Russell
Looking at the main drivers of gold we always consider domestic interest rates, inflation concerns, geopolitical fears, and demand globally and from ETFs. While the title of the article points out that demand in China and India has fallen – 12% and 28% respectively – ETFs have also been net sellers of the metal. The author argues that the factors that drove gold to its highs in 2011 are not prevalent in today’s gold market and until they return the upside is limited.
It’s a interesting look at the gold market. Click here to read the full post.
Even though Chindia gold demand is off appreciably from 2nd qtr 2013, it still represents 20-25 % of worldwide production, excluding China’s own production. and those are above board numbers. The west has bought a bill of goods from the western central planners, hook, line and sinker.
To C Fleck.
Morris Hubbard does an early every Friday morning tutorial on the metals and associated plays on 321gold. Usually 4-5 4 minute walk thru the charts, as good as it gets for free.
Supply is high for now but supply reductions are on there way and any significant sustained drops in the price of gold will result in heavy reductions in supply. If you are in to low cost gold producers or high grade explorers you have nothing to fear.