Gold demand drops > but so is supply
News
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Posted 29/05/2014
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Current numbers for Q2 of 2014 suggest gold demand has dropped with both China imports and Swiss exports softer than Q1. This can’t come as much of a surprise to any but the most ardent gold bug as sentiment is poor and, quite frankly, it would be extraordinary to sustain the record breaking demand we’ve seen over the last year. The demand elephant in the room is India and what will happen with Modi in charge. But as we’ve written recently (here and here) this pails compared to the future of supply which is looking very weak.
This quote says it all:
In 1995, 22 gold deposits with at least two million ounces of gold each were discovered, according to SNL Metals Economics Group. In 2010 there were six such discoveries, and in 2011 there was one. In 2012: nothing.
- Kelsey Campbell-Dollaghan, May 21, 2014