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That's from the same source. Here's more so you get the picture painted to your average Joe FOCUS: Gold Continues Slide; Traders Watching For Pickup In Physical Demand. Remember when market prices fall below the magic number, gold mines shut down or go offline.
"We have not seen a substantial increase in demand," agrees Victor Thianpiriya, commodities analyst at ANZ Bank.
Source. Trying to curtail demand or consumption.
India has increased the duty on gold imports for the second time in six months, in an attempt to rein in surging demand for the precious metal.
Source. More, China Gold demand may hit landmark 1,000 tons this year
Demand from China's two largest sectors - jewellery and investment - reached a combined total of 423 tonnes in 2009, with 314 tonnes supplied by domestic mines. "This shortfall creates a snowball effect as China's gold industry may not be able to keep pace with the annual leap in domestic consumption despite rising to be the world's largest gold producer since 2007," WGC said in the report.
Physical demand reached the point last week where it was overwhelming the New York markets slowly but surely. In summary, the gold market is seeing sales from the SPDR gold ETF which have persisted for nearly three months now. The total held in the SPDR fund is expected to fall below 1,000 tonnes this week if the sales continue as before. We do believe there is a core of holders keeping their gold for the very long term, such as Paulson’s funds. What proportion of the fund these comprise is not certain, but we must be getting close to the point where the selling stops. When it does the robust demand, particularly from China, will quickly absorb all available gold. The timing of that event is impossible to say.
Gold faces 'global supply crunch' . This is important, very important. If the market value of gold crashes to a magic number, then gold mines run into the negative. It will cost more to mine it than it does to sell it. So, they plan on going after quality rather than quantity. Yea, right.
Gold miners have responded to recent falls in the price by concentrating on the highest quality deposits, scrapping extraction of more marginal material. This will cause a "significant decline" in global production of gold, according to Angelos Damaskos, who runs the Junior Gold fund.
China’s gold production keeps on rising. 10% increase ain't enough to cover the demand from supply. And from the looks of things, you can't mine enough to keep up with demand.
GOLD output in China, the world’s largest producer, is poised to rise about 10% this year to a record even as bullion prices slump, the nation’s mining association said.
Gold Miners Lose $169 Billion as Price Slump Adds ETF Pain.
Gold producers, ignored as global stocks rebounded in the past two years and investors turned to exchange-traded funds that track bullion, face closing mines or shutting themselves down after the metal’s worst slump in three decades this week made 15 percent of miners unprofitable.
Canadian miner Barrick Gold will announce more jub cuts and potentially the closure of mines in Western Australia as the falling gold price continues to weigh on the sector,
The Australian Financial Review reports. According to the newspaper, Barrick's Australia Pacific vice-president Mike Feehan is set to address staff in Perth on Wednesday, where he is expected to outline further cost-saving measures.
Barrick, the world's largest gold miner, has already trimmed its WA staff by 60 people this month. The AFR reports around 100 jobs are set to be cut from the group's regional head office in Perth, with more losses - or potentially partial closures – likely at Barrick's five mining operations in WA.
Originally posted by cenpuppie
I have the sinking feeling that there isn't enough gold to go around... that's my conspiracy. And when that shoe drops, all hell breaks loose.
Originally posted by cenpuppie
Because one gold bar in hand is worth two gold bars in the vault.
I think that all that paper gold they were mining drove the price up
It should have never gone as high as it did.