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Gold Demand Plunges To 6 Year Low

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http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE

Gold Demand Shrinks to Six-Year Low on Recession, Council Says

By Claudia Carpenter

Aug. 19 (Bloomberg) -- Gold demand fell to a six-year low in the second quarter as recession curbed buying by jewelers and electronics producers, the World Gold Council said. Central banks were net buyers for the first time since at least 2000.

Global consumption fell 8.6 percent to 719.5 metric tons from a year earlier, the London-based industry group said in a report today. That’s the lowest level since the first quarter of 2003. Jewelry demand declined 22 percent and electronics, the biggest industrial use for gold, slid 26 percent.

The World Bank said in June the global recession will be deeper than it expected three months earlier.

Too much production capacity globally, deflation, unemployment, credit collapse and China's bubble bursting.

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http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE

Gold Demand Shrinks to Six-Year Low on Recession, Council Says

By Claudia Carpenter

Aug. 19 (Bloomberg) -- Gold demand fell to a six-year low in the second quarter as recession curbed buying by jewelers and electronics producers, the World Gold Council said. Central banks were net buyers for the first time since at least 2000.

Global consumption fell 8.6 percent to 719.5 metric tons from a year earlier, the London-based industry group said in a report today. That’s the lowest level since the first quarter of 2003. Jewelry demand declined 22 percent and electronics, the biggest industrial use for gold, slid 26 percent.

The World Bank said in June the global recession will be deeper than it expected three months earlier.

Too much production capacity globally, deflation, unemployment, credit collapse and China's bubble bursting.

hmm, central banks buying....could be a sign.

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What's that you always say about the market?

It's only down a few dollars today. :rolleyes:

“Tough economic conditions have impacted jewelry and industrial demand,” Wozniak said. “Investment demand provided a cushion and we do expect that to continue.”

===

Central banks bought 14 tons of gold more than they sold, the first quarterly net purchases since at least 2000, according to the council, based on figures from London-based research company GFMS Ltd. The so-called official sector had net sales of 69 tons in the second quarter last year, the report said. Wozniak said GFMS wouldn’t identify any of the buyers.

Central bank purchases aren’t counted in the 719.5 tons of total demand because they are considered a traditional source of supply, she said.

Edited by roman holiday

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hmm, central banks buying....could be a sign.

The chinese are hoovering up domestic production I believe. They're leaving the external markets alone just now. What would that suggest?

Edited by Alan B'Stard MP

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http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE

Gold Demand Shrinks to Six-Year Low on Recession, Council Says

By Claudia Carpenter

Aug. 19 (Bloomberg) -- Gold demand fell to a six-year low in the second quarter as recession curbed buying by jewelers and electronics producers, the World Gold Council said. Central banks were net buyers for the first time since at least 2000.

Global consumption fell 8.6 percent to 719.5 metric tons from a year earlier, the London-based industry group said in a report today. That’s the lowest level since the first quarter of 2003. Jewelry demand declined 22 percent and electronics, the biggest industrial use for gold, slid 26 percent.

The World Bank said in June the global recession will be deeper than it expected three months earlier.

Too much production capacity globally, deflation, unemployment, credit collapse and China's bubble bursting.

Not being funny, but the headline and the article don't match.

I'm no goldbug but this is pure ********.

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719 tons of REAL money, is that all!!!! WOW.

Don't care this announcement though RB, do you? I don't have eggs in one basket and Gold is magical, don't you agree? [ I prefer Silver to stroke though :blink: ]

5-10% of your savings should be in a precious metal or other whether you are TFH or not.

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...and yet it stubbornly refuses to trade below 910. Now, I wonder what will happen to the price if and when demand returns?

Gold and house prices will both rise when demand returns. For now demand is starting to collapse for both:

"and electronics, the biggest industrial use for gold, slid 26 percent."

Demand, or lack of it, will eventually filter through to gold prices.

Gold has had a good run rising from the $300's to the $900's. Thats a nice return if you got in early and plan to get out near the peak. Nothing goes up forever, even house prices, as we have all found out.

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Gold and house prices will both rise when demand returns. For now demand is starting to collapse for both:

"and electronics, the biggest industrial use for gold, slid 26 percent."

Demand, or lack of it, will eventually filter through to gold prices.

Gold has had a good run rising from the $300's to the $900's. Thats a nice return if you got in early and plan to get out near the peak. Nothing goes up forever, even house prices, as we have all found out.

They've just relabeled industrial use/jewelry use as total demand and gone from there.

Article is bobbins.

Like saying demand for housing is sky high because someone bought some bricks from B&Q.

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Gold and house prices will both rise when demand returns. For now demand is starting to collapse for both:

In the post QE era demand for gold remains strong. It is because of it's monetary qualities, not its industrial qualities, that investor demand will strengthen.

Edited by roman holiday

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So come on, is it going up or down in value soon?! :lol:

Depends how much pent-up demand there is. If demand is at a six year low it may mean less people want to buy gold. Its a bit like the housing market and the debunked claim that houses are a one-way bet as an investment.

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The chinese are hoovering up domestic production I believe. They're leaving the external markets alone just now. What would that suggest?

G for 1?

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Gold and house prices will both rise when demand returns. For now demand is starting to collapse for both:

"and electronics, the biggest industrial use for gold, slid 26 percent."

Demand, or lack of it, will eventually filter through to gold prices.

Gold has had a good run rising from the $300's to the $900's. Thats a nice return if you got in early and plan to get out near the peak. Nothing goes up forever, even house prices, as we have all found out.

So Government issued paper will hold (even increase) its value while governments totally abandon fiscal responsibility?

You just don't get that gold is money not a commodity.

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Gold and house prices will both rise when demand returns. For now demand is starting to collapse for both:

"and electronics, the biggest industrial use for gold, slid 26 percent."

Demand, or lack of it, will eventually filter through to gold prices.

Gold has had a good run rising from the $300's to the $900's. Thats a nice return if you got in early and plan to get out near the peak. Nothing goes up forever, even house prices, as we have all found out.

:lol::lol:

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They've just relabeled industrial use/jewelry use as total demand and gone from there.

Article is bobbins.

Like saying demand for housing is sky high because someone bought some bricks from B&Q.

Exactly. Jewellry and industry are a drop in the ocean for gold. Markets aren't driven by jewellers buying chains and rings FFS.

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http://www.bloomberg.com/apps/news?pid=206...id=ayr30bHgFXQE

Gold Demand Shrinks to Six-Year Low on Recession, Council Says

By Claudia Carpenter

There is something strange going on if demand has slumped to a 6 year low and yet price has gone up 300% or more in the meantime. Methinks someone is spinning a story here

I think I prefer to believe the market rather than a VI mouthpiece

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Gold and house prices will both rise when demand returns. For now demand is starting to collapse for both:

"and electronics, the biggest industrial use for gold, slid 26 percent."

Demand, or lack of it, will eventually filter through to gold prices.

Gold has had a good run rising from the $300's to the $900's. Thats a nice return if you got in early and plan to get out near the peak. Nothing goes up forever, even house prices, as we have all found out.

please please please can we have one of your famous bear calls on gold; i'm looking to load up again and i need the incentive

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Not being funny, but the headline and the article don't match.

I'm no goldbug but this is pure ********.

Read it today in Telegraph, it was very contradictory.

Hard facts show that ETF purchases were up 57 tonnes + China's 72 tonnes.

All other purchases were down 153 tonnes. A discrepancy of 34 tonnes.

Not enough to move prices one way or another from last years $900/1000 trading range, which seem to be the norm at the moment.

Does hint that pog could go down in interim, but we don't know what will come out of the woodwork tomorrow.

I couldn't possibly describe it as Injin does as ********, I'm far too nice.

But it has to be said, what was the article saying.

It was a non story in August methinks.

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Funnily enough I notice goldline.co.uk has just cut their premiums drastically... hmmm
Update 21/08/09: NEW PREMIUMS ACROSS THE RANGE - LOWEST UK PRICES ON KRUGERS, BRITANNIAS AND GOLD BARS! ALL BARS FRESHLY COINED AND DIRECT FROM THE UK'S LARGEST REFINERY

I see the QE2 (except 2009 issue), George V and Edward VII Sovereigns are reduced by about £3 or £4. The Victoria Sovs seem to be still at their normal prices.

On the other hand CoinInvestDirect prices are up £3 today for Sovs (due to the higher spot price), but still cheaper than Baird.

Goldline's out of stock coin list is not as long as it was a little while ago, but they are still out of stock or little stock on many coins.

Australia 2 Ounce Nugget - Out of stock £ 1,320.25

Australia Nugget 1oz - 1 only! £ 660.25

Australia Nugget 1/2oz - out of stock £ 338.75

Australia Nugget 1/4oz - out of stock £ 172.50

Canada Maple Leaf 1/10 oz - sold out £ 69.50

China Panda 1oz - out of stock £ 660.25

China Panda 1/2oz - out of stock £ 338.75

China Panda 1/4oz - out of stock £ 172.50

China Panda 1/10oz - out of stock £ 69.50

Germany 20 Marks - Some available £ 149.50

Hong Kong $1000 - 1 TIGER Yr - 1986 - ONLY £ 292.75

Iran 1/2 Pahlevi - out of stock £ 88.75 Isle of Man GB Sovereign 1973 - 1977 - out of stock £ 158.50

Isle of Man GB Half Sovereign 1973 - 1977 - out of stock £ 84.25

Isle of Man GB Sovereign 1965 - out of stock £ 166.50

Isle of Man GB Half Sovereign 1965 - 1 only! £ 88.25

Isle of Man GB 5 Pound Piece - 1965 Type - Only 2 available £ 817.75

Isle of Man GB 5 Pound Piece - 1973 Type - Last 2! £ 817.75

Italy 20 Lire - out of stock £ 116.25

Mexico 20 Pesos - out of stock £ 307.25

Russia 5 Roubles 1897 - 1911 - out of stock £ 122.25

Russia 10 Roubles 1898 - 1911 - out of stock £ 286.00

Russia Chervonetz - out of stock £ 148.00

United Kingdom Victoria YH Sovereign Shield - out of stock £ 170.50

USA Eagle 1oz - out of stock £ 660.25

USA Eagle 1/2oz - sold out £ 338.75

USA Eagle 1/10oz - sold out £ 69.50

Edited by Take Me Back To London!

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Gold will go down due to deflationary presures at the moment. When the next leg of the W shaped crash happens expect gold to tank as well with stock & commodities. The big winners will be USD & Yen. Longer term gold will resume its bull market.

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Gold will go down due to deflationary presures at the moment. When the next leg of the W shaped crash happens expect gold to tank as well with stock & commodities. The big winners will be USD & Yen. Longer term gold will resume its bull market.

If you were waiting in pounds for gold to fall you will be disappointed. Sterling would fall faster than gold on a crash in the markets.

Even then I would be surprised to see gold go under $900 now as QE has effectively put a floor under it.

You would expect the dollar to do well with deflationary pressures, but it has looked a little weak given investor concerns over QE. Many were expecting the dollar to rally here, but QE psychology is hindering this. I think you are right to say the dollar will rally on a crash, it could take a full-on deflationary panic to see the dollar spike now. The better currency is Yen which should strengthen even on the risk averse trade [much lesser in degree than a deflation panic]. And then the Yen could massively spike on the a possible coming crash.

Yen and gold are the safest currencies imo.

Edited by roman holiday

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