An amazing chart which shows the extraordinary growth in Chinese demand for physical gold from 2009 to last year. In 2013 Chinese demand approached the total world mine supply. In the prior year India was the largest importer before restrictions in 2013. We had some commentary last year suggesting demand increased sharply in 2013 only temporarily because of the sharp price drop but this chart shows that while there was a sharp spike in demand, there has also been very strong steady growth in demand.
Demand for physical from both China and India must now exceed world mine supply by a large margin with the shortfall in 2013 covered by etf selling.
ETF selling is a very limited supply. What happens when the Indian restrictions are eased and etf selling slows? The media tells us the fundamentals are weak. No idea. They report what they are spoon fed or told to report.
chart from http://news.goldseek.com/GoldSeek/1389728986.php
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