blindpig
02-18-2009, 09:14 AM
NEW YORK & LONDON--(BUSINESS WIRE)--Sustained investor interest in gold over the course of 2008 against a backdrop of the worst year on record for global stock markets and many other asset classes, helped push dollar demand for the safe haven asset to $102bn, a 29% increase on year earlier levels. According to World Gold Council’s (“WGC”) Gold Demand Trends, identifiable gold demand in tonnage terms rose 4% on previous year levels to 3,659 tonnes.
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The most striking trend across the year was the reawakening of investor interest in the holding of physical gold. Demand for bars and coins rose 87% over the year with shortages reported across many parts of the globe.
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Industrial demand in 2008 was another casualty of the global economic turmoil, down 7% to 430 tonnes from 461 tonnes in 2007. With the electronics sector the main source of industrial demand, reduced consumer spending on items such as laptops and mobile phones had a direct impact on gold demand.
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Total demand remained very strong in the fourth quarter of 2008, up 26% on the same period last year at 1036 tonnes or $26.5bn in value terms.
The biggest source of growth in demand for gold in Q4 was investment. Identifiable investment demand reached 399 tonnes, up from 141 tonnes in Q4 2007, a rise of 182%. The main source of this increase was net retail investment, which rose 396% from 61 tonnes in Q4 2007 to 304 tonnes in Q4 2008. The most dramatic surge was in Europe, where bar and coin demand increased from just 9 tonnes in Q4 2007 to 114 tonnes in Q4 2008, a 1,170% increase. ETF holdings broke new records during the quarter. Although the net quarterly inflow was down from the level of the previous quarter, the growth rate on Q4 2007 was a strong 18%.
Total demand in India, the world’s largest gold market, in the fourth quarter was up 84% in tonnage terms, led by a very strong 107% rise in jewelry demand, underpinned by investment attributes of gold. This phenomenon has to be set against a very weak Q4 2007, however. Total gold demand in Greater China in Q4 was resilient to the global turmoil. Total off-take was up 21% on the same period last year, with investment the main contributor to growth but jewelry demand also holding up well.
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In the United States, the deteriorating economic conditions produced a mix result for gold demand. Fourth quarter jewelry demand was down 35% as consumer spending plummeted. In stark contrast demand for gold bars and coins rocketed by 370% in Q4, representing 35 tonnes of gold.
http://finance.yahoo.com/news/Gold-Demand-Pushed-Through-bw-14394747.html
The rising price of gold has been primarily driven by the commodities market since it bottomed at about $250 in early 2002(if my memory serves). Looks like the 'safe haven' buying is driving the price now with commodities crashing. Some of these asswipe gurus are predicting $2000/oz by the end of the year, the well off are getting nervous.
There is a lot of wreckage in the fast lane these days. Not even the rich feel safe from it, and people are looking for reasons. The smart say they can’t understand it, and the dumb snort cocaine in rich discos and stomp to a feverish beat. The stomping of the rich is not a noise to be ignored in troubled times. It usually means they are feeling anxious or confused about something, and when the rich feel anxious and confused they act like wild animals.
Hunter S Thompson.
snip
The most striking trend across the year was the reawakening of investor interest in the holding of physical gold. Demand for bars and coins rose 87% over the year with shortages reported across many parts of the globe.
snip
Industrial demand in 2008 was another casualty of the global economic turmoil, down 7% to 430 tonnes from 461 tonnes in 2007. With the electronics sector the main source of industrial demand, reduced consumer spending on items such as laptops and mobile phones had a direct impact on gold demand.
snip
Total demand remained very strong in the fourth quarter of 2008, up 26% on the same period last year at 1036 tonnes or $26.5bn in value terms.
The biggest source of growth in demand for gold in Q4 was investment. Identifiable investment demand reached 399 tonnes, up from 141 tonnes in Q4 2007, a rise of 182%. The main source of this increase was net retail investment, which rose 396% from 61 tonnes in Q4 2007 to 304 tonnes in Q4 2008. The most dramatic surge was in Europe, where bar and coin demand increased from just 9 tonnes in Q4 2007 to 114 tonnes in Q4 2008, a 1,170% increase. ETF holdings broke new records during the quarter. Although the net quarterly inflow was down from the level of the previous quarter, the growth rate on Q4 2007 was a strong 18%.
Total demand in India, the world’s largest gold market, in the fourth quarter was up 84% in tonnage terms, led by a very strong 107% rise in jewelry demand, underpinned by investment attributes of gold. This phenomenon has to be set against a very weak Q4 2007, however. Total gold demand in Greater China in Q4 was resilient to the global turmoil. Total off-take was up 21% on the same period last year, with investment the main contributor to growth but jewelry demand also holding up well.
snip
In the United States, the deteriorating economic conditions produced a mix result for gold demand. Fourth quarter jewelry demand was down 35% as consumer spending plummeted. In stark contrast demand for gold bars and coins rocketed by 370% in Q4, representing 35 tonnes of gold.
http://finance.yahoo.com/news/Gold-Demand-Pushed-Through-bw-14394747.html
The rising price of gold has been primarily driven by the commodities market since it bottomed at about $250 in early 2002(if my memory serves). Looks like the 'safe haven' buying is driving the price now with commodities crashing. Some of these asswipe gurus are predicting $2000/oz by the end of the year, the well off are getting nervous.
There is a lot of wreckage in the fast lane these days. Not even the rich feel safe from it, and people are looking for reasons. The smart say they can’t understand it, and the dumb snort cocaine in rich discos and stomp to a feverish beat. The stomping of the rich is not a noise to be ignored in troubled times. It usually means they are feeling anxious or confused about something, and when the rich feel anxious and confused they act like wild animals.
Hunter S Thompson.