[Marxism] Supply and demand?
marvgandall at videotron.ca
Thu Jul 10 14:41:19 MDT 2008
> As for purple prose: do you have any evidence for your assertion that
> mining has lagged demand? Maybe it has, but what are the production
> and how much is being sold? Is there data for this beyond anecdotes?
According to the World Gold Council, tonnage demand for gold - primarily for
jewellery and gold bullion for investment - was 701 tons and mine output was
593 tons during the first quarter. Demand actually dropped 16% from the same
period last year and was the lowest on record for five years. This was
attributed to the slowdown in the US and a falling off of jewellery buying
in India, the world's largest market. But demand for the physical metal was
up sharply in other major markets like China and Russia.
The overall trend has been for demand to outstrip supply, contributing to
price pressures alongside the the flood of money which poured into gold
funds and ETF's as a bet on the falling USD and as a hedge against
inflation. According to the WGC's economic adviser, Jill Leyland: "Gold's
main markets are India, China, Middle East, Turkey and the US. Now, in the
US obviously the consumer is under pressure, but in all the other markets
the consumer is still doing very well...what we can say is that supply of
gold remains constrained because mine (production) has been, if anything,
slightly falling year by year, and nobody sees a radical change there,
whereas we believe jewellery demand will remain buoyant because most of
gold's major markets are doing very well economically."
More information about the Marxism