Thursday, November 15, 2012

Gold Price, Demand and Trends


BY Shayne Heffernan | November 15 2012 12:44 PM

Global gold demand in Q3 2012 was 1,084.6 tonnes (t), down 11% from the record Q3 2011 figure of 1,223.5t. This dip in demand is in comparison with exceptional demand in Q3 last year. Gold demand remains resilient. Q3 2012 was above the five year quarterly average of 984.7t.

Economist and Hedge Fund Manager Shayne Heffernan ofwww.livetradingnews.com takes a look at Gold

Gold slid more than 1 percent to a one-week low on Thursday at $1,704.69 an ounce, under pressure from a fresh fall in equity markets, with momentum picking up as the metal broke through support near $1,715.

Given the massive money printing to be conducted by the Western Governments Gold is set for a long term rally, $2500 in 2013 and $5000 is possible by 2015. Europe, USA and Japan are all printing far to much money and there will be consequences for the excessive nature of their policies.

Gold/Silver

52.7789

15-Nov-2012 22:22

Gold/Platinum

1.0924

15-Nov-2012 22:22

Gold/Palladium

2.6897

15-Nov-2012 22:22


In value terms, gold demand was 14% lower year on year at $57.6bn and the average gold price of $1,652/oz was down 3% on the record average Q3 2011 price.

The key findings from the report are as follows:

Global investment in ETFs over the quarter was up significantly by 56% on the previous year.

The Indian market is showing signs of recovery, up 9% to 223.1t from 204.8t in Q3 2011 following increases in both jewellery and investment demand. In comparison with Q3 2011 jewellery demand was up 7% to 136.1t and investment demand rose by 12% to 87.0t. Investors moved into the imitation coin market*, up 59%, whilst jewellery increased due to re-stocking ahead of the Indian wedding and festival season. Indians appear to have acclimatised to recent price trends and have been buying into a rising market.



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