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clock Created with Sketch. 22/07/14
12:49
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Originally posted by Daytr
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Hi Timber, if you can't see the difference between the mass ETF selling that was seen when gold was crushed & the Asian demand for that same gold, then you really are a long way from understanding the gold market. A product like an ETF offers investors liquidity & easy access to buy & sell & sell they did & quick smart. However an ETF is only a limited supply & in fact its unlikely all of the held ETF gold would be sold anyway & it appears relatively stable now. The Chinese demand we are seeing is satisfying an appetite that for generations have not been allowed to own gold & it is also satisfying a growing massive middle class with disposable income they have never had before & they want things like a smart phone but they also want jewelry & to invest in gold as its in the Chinese psychology. So with ETF selling pretty much dried up & I suspect the remaining holders are pretty much in for the long haul i.e. sticky & China's demand not going away & Indian demand rebounding where does that supply now come from to satisfy demand? Production isn't enough & as said in a previous post average production grades are down 75%. So to attract new sellers the price IMO must go up over time. The funny thing is, if something does start moving up it attracts investors & this for mine is when gold will start to rise faster than what most are anticipating. When the ETFs turn net buyer again & they will.
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Daytr,
