It appears Chinese gold demand this year will only be around 5% off last year’s record. Indian demand picking up strongly too.
LONDON (MINEWEB) -
Apologies for returning to Chinese and Indian gold demand again – but we do feel these two nations are so important for the future of the gold price given the huge amounts of gold they continue to absorb. This in total has to be close to, or even perhaps will exceed, annual new mined gold production.
It is often pointed out, particularly by those who consider gold irrelevant in today’s financial markets, that new mined production is of no consequence given the huge volumes of above ground gold stocks held by Central Banks globally, in the big gold ETFs and hoarded in private hands – much, perhaps most – held in the East. And they have a point if there was a propensity for the Central Banks and private gold holders to sell, but this is such a Western attitude to global gold holdings where profit is almost everything, that it completely ignores a totally different mind-set, which prevails elsewhere in the world.
As we have pointed out before, the value of gold is instilled into us even in the West from our mothers’ knees. Numerous fairy stories and legends revolve around gold and its perceived value as a store of wealth and the lengths people, seen as both good and evil, will go to to lay their hands on it. Gold’s inbuilt and ever ongoing PR has to be the envy of today’s spin doctors!……
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