India & China's gold consumption up over 100% in 2 years
12 months to end of Q2 2013
India 1,048.5 tons
China 998.3 tons.
I think with the recent months trend that China is set to surpass India as the largest gold consumer by year end.
Friend Daytr hasn't seen the latest news from the FT.
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In China, the volume traded on the Shanghai Gold Exchange has softened further, while media reports from India continue to paint a picture of limited buying before a key festival in which gold buying occurs,” analysts at Barclays wrote in a report published earlier this week.
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Friend Daytr hasn't seen the latest news from the FT.
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In China, the volume traded on the Shanghai Gold Exchange has softened further, while media reports from India continue to paint a picture of limited buying before a key festival in which gold buying occurs,” analysts at Barclays wrote in a report published earlier this week.
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Skol, in that same article it says:
"Analysts have said China will import more than 1,000 tonnes of gold this year and will overtake India as the world’s biggest consumer of gold"
Thus it totally backs up what Daytr said.
Personally I think the fundamental case for much higher gold and silver prices is very compelling and I'm sitting on the sidelines watching with interest.
The USD Index is up
Probably taper before years end
Strong employment data
Gold down 22% this year
Exit from ETF's
I didn't say Daytr was wrong, I said he hadn't read the latest news which reveals reduced demand in India and China and paints a very bleak picture for gold.
The demand for gold in China is an exponential bubble which is the process of deflating. The chart below shows an excellent example of herd behaviour, from almost zero demand to HK$90,000,000,000 in 2 years.
Look out below, here it comes.
Share markets are surging ahead in a wave of euphoria-the only fear out there is the fear of losing out . Taxi drivers are starting to talk about shares,especially tech shares.....-UH OH
Share markets are surging ahead in a wave of euphoria-the only fear out there is the fear of losing out . Taxi drivers are starting to talk about shares,especially tech shares.....-UH OH
The latest US unemployment figures had the unemployment rate at 7.3% ; that's not a fantastic number & I can't see tapering starting this year.
I don't think quoting what the SPQR gold fund is doing on any particular day is very insightful. It's akin to saying that because the sun is shining today it won't rain tomorrow. Gold has been hammered and I can't see any factors that will hold up the price between now and the end of the year, but from there on I'd be looking at:
- US govt show-down back on the table.
- Taper / non-taper: Tapers effects on the Dow and US data / Non-tapers effects on gold.
We are only talking about 2 months away and the US data that has been much-heralded is actually pretty weak.
Agree-
As long as this ''easy money'' is feeding the share market ,along with a sniff or improvement in the US,Gold probably wont get much traction.
But there are dangers everywhere-the Deja vu of soaring tech shares--suddenly US housing ramping up far to quickly-the sharemarket just plain overbought--The weak links in Europe-and of course the elephant in the room--Gov. Debt.
But people are tired of bad news --time to party!! just like jimmi hendricks-jim morrison-janis joplin--or-maybe with a little luck the economy will limp along like Ozzie Osbourne
The jobs data out of the States was obviously much better than expected, however the number itself is ok but not great. It would be the equivalent of Australia adding around 13k jobs if you work back on a per capita basis. Gold needs to hold $1280 for mine otherwise we may see a test of the lows. I don't really see where the impetus will come from to push gold much lower & get bang for your buck. ETF selling continues however at no where near the rate we saw 3-6 months ago. We saw Asian demand surge last time we saw gold nearing $1200 & I suspect we would see the same again. Production will also be hurt if we see gold much lower & as such I would be very careful investing in producers that have a heavy load of debt & high production costs & there are a few of those around.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
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Originally Posted by Daytr
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