who to believe?, page-5

re: who to believe? - dont be fooled - easy stuff Aspro mate,
Both reports are wrong and very misleading, the corespondents for both articles do not have the faintest about commodity demand drivers.

Remember 92-96% of market participants (by volume/value) are pure speculators/investors. Only 2-3% of all trades are physical sellers/users. The same goes for most of the commodities. Someone should contact these corespondents and politely ask them to do better research or get out of the game as they are misleading investors. Best source of information in relation to the physical demand in any given month are LME or Comex. Physical deliveries on the last day of contract settlement are the most reliable source of determining real physical demand .

Remember, speculators in the know are driving the market. They are driven by events 6 to12-18 months away. The rest are just followers. Physical demand rarely makes a difference in current terms. The current Indian demand was factored into the Gold price 6 months ago. Market is now factoring in the events which are likely to happen in the next 12 months.

Hope this is a little clearer.
Cheers
Zackman