gut feel on the grade from golden hind , page-11

While we wait for the next update on the trial mine, granting of the ML and an expansion of exploration activity when the bank balance builds, there is the following view on POG from the world gold council. While India has managed to again put a temporary dampener on gold purchasers in order to try and balance their trade, it has not prevented the current rebound in gold as China demand continues to grow and looks set to pass India as the world’s largest consumer this year.

“The Council revealed on Thursday that the country's demand for gold is expected to reach 1,000 tonnes this year, Reuters reports. This compares with India's average yearly imports of 963 tonnes.” “"We're going to have a record year for Chinese gold demand," Grubb told Bloomberg in a video interview. "In a year when growth is slowing in the Chinese economy. It's quite interesting."”

Gold sell off was because of “fed tapering talk” but world gold council view is that that is “overly discounted” in the market.
They forecast recovery in US to be below par and take a long time, very low rates for a protracted period while US gets out of its debt problem (how long will that take- ask the Japanese!).
Production is in deficit and this has been recently met by ETF redemptions “but that is ending” and some of that gold has gone to China (forget about that coming back into the market again).
“The major driver behind this figure is investment and jewellery demand, with the latter accounting for a larger share much like in India, Grubb told Reuters.”
“Their going to buy more gold whatever happens”, even a slow down to more bearish forecasts of 4% growth (short of a recession).

http://www.mining.com/china-to-become-worlds-biggest-gold-consumer-world-gold-council-70404/

http://www.gold.org/video/play/bloomberg_surveillance_grubb_on_gold/