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Gold demand of 990 tons in Q2 was off 9% Y/Y, reports the World Gold Council (.pdf). Demand was...

Gold demand of 990 tons in Q2 was off 9% Y/Y, reports the World Gold Council (.pdf). Demand was lower across all sectors - jewellery, technology, investment - except central banks, which doubled their net purchases to 157.5 tons in Q2. Supply? At 1,059.1 tons, its was off 6% Y/Y.
Comments (7)
  • Why are CB's buying gold?

     

    Isn't their paper of greater value?
    16 Aug 2012, 10:10 AM Reply Like
  • Our (NUGT) up 4% today Gold still a long term buy we think
    (MER) HSBC and lots of chartists we respect agree.They say
    $2K/oz by 2013 on world easing and commodity inflation.
    16 Aug 2012, 10:55 AM Reply Like
  • If what would you sell yours for $6,000? The way you sold it for three times the market price last time?
    "
    sold once when gold went
    Parabolic in 1979-80
    with runaway inflation to $2300 sold the top bought
    back in when it bottom ed 20-30% of our folios."

     

    remurraybs 6/22
    16 Aug 2012, 03:56 PM Reply Like
  • While this reduced demand has been widely reported in the MSM. I haven't seen much comment that almost every miner has reported lower production over this same period. Nobody really knows how much is going into Chinese government stocks however, but there has been plenty of support below $1,600 so there are some careful buyers accumulating metal without pushing the price over $1,620.
    16 Aug 2012, 11:45 AM Reply Like
  • Always carefully watch CB purchases. It is perhaps the single best predictor of where gold is headed in a macro sense rather than focusing on retail. The one thing that would cause the price of gold to plunge would be massive dumping by CBs on the open market(has happened before). The amount matters but the trend is even more important. It appears to me that the CBs are probably replacing some of their U.S. dollar reserves with gold to reduce risk of the current dollar bubble bursting(probably will). This could eventually be a stampede. Who knows?
    16 Aug 2012, 11:49 AM Reply Like
  • All I know is, I'm bullish on gold, short and long-term. Only makes sense to me at this juncture.
    16 Aug 2012, 03:05 PM Reply Like
  • Stan, you have the right formula. I started buying gold in my 20's when it was $35 an ounce, and have been accumulating ever since. I have ridden this puppy ever since. Playing the market for short term gains can be profitable, but one can also take a bath. I remember the 1979-1980 period when gold spiked from $200 to $800 (400% increase) in a short 8 months. We had lines of folks selling gold and silver in our jewelry store. Gold was $250 an ounce when we retired in 2000. Over the long term gold has outperformed the S&P. When the government pegged the price at $35 for 50 year inflation period, gold was a screaming bargain in fiat money. Never cheaper in real terms in the history of the world. Governments can really screw things up when they try to control prices. I recognized this in my early 20's, but had little money to make a major commitment then.
    23 Aug 2012, 10:37 AM Reply Like
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