Posted on 02/19/2009 3:11:49 AM PST by TigerLikesRooster
Gold demand has risen to 3,659 tons: WGC
Commodity Online
LONDON: The global economic meltdown has propelled a surge in demand for gold jewellery, bars and coins that the demand for the yellow metal has risen to touch 3,659 tons, says a new report from the World Gold Council (WGC).
The Gold Demand Trends, compiled for WGC by GFMS Limited said that investment demand for gold, including gold exchange traded funds (ETFs), bars and coins, was 64% higher in 2008 than in 2007.
”This is equivalent to an additional inflow of $US15 billion. Demand for gold bars and gold coins rose 87% over the year with shortages reported across many parts of the globe,” said the WGC report.
It said jewelry demand was up 11% in dollar terms at almost $US60bn for the whole year, but down 11% in tonnage terms at 2,138 tonnes.
Here are the key points in the report:
**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%.
(Excerpt) Read more at commodityonline.com ...
Ping!
Wonder when gold will rise to its real value vs the Obamabuck?
“Y’know 3,659 tons, waddya get ? Another day older and deeper in debt...”
(With sincerest apologies to Tennessee Ernie Ford)
People are running, in a panic, to gold for a safe haven. The price of gold will drop as investors pull their money out, take their profits, and move onto oil which is primed and ready to go right now.
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Also, I don't believe people are in a panic. They're simply sobering up and obtaining REAL money - gold and silver. IMNSHO
I ain’t gettin no free house!!
I demand MY 3,659 TONS!!
“People are running, in a panic, to gold for a safe haven.”
Yes, and it is on paper.
On another forum, I see a DU type kid bragging that
he is sitting on sacks of gold.
Well, what does one do with sacks of gold?
After the current dust settles, what will it be worth?
OK folks, what’s a guy supposed to do with retirement mutual funds right now with about 10 years left until retirement?
Nothing. But right now it is both a speculative investment in the absence of anything else and a hedge against inflation in a balanced portfolio. I buy actual gold with fun money but also as a long term collector (of coins). In my stock investments I do short term speculation on mining shares and hold a few more for the medium term. There's no reason that gold should be worth anything except for the central bankers and their "quantitative easing". Once that dust settles (might take five years) gold will languish again.
Redeploy some into the precious metals fund if that is a choice. If not, then an inflation-protected fund. I would say 20%. For the rest I am about 60-40 stock to cash right now (20 years to retirement) and buying more on the dips. I sell on the bounces and wound up 60/40 cash to stock in January bounces.
If you want one strategy to pursue with no further changes, forget about it. The days of buy and hold are over. Cash might king now, but that won't last. The deflation/inflation battle is not over and will swing back and forth for weeks, months and years. You have to trade those swings or find a fund that will do that for you.
Sell your losers and buy SRS (ultrashort commercial real estate fund/etf) ,, gold (take delivery! don’t accept a certificate) ,, other short funds in industries that will be hurt by Obama propping up competition or distorting the market ...
I have a few medical stocks that have outstanding new lifesaving products (one is THOR) ... right now with restrictions on what will be paid for under Obamas healthcare takeover I’d sell all healthcare ... short medical NOW...
“I buy actual gold with fun money but also as a long term collector (of coins).”
Yes, I can see that as a fun hobby as well as a good investment as a collectible.
I just wonder about the wisdom of buying it on paper.
Today it is the pop phrase with those who know nothing.
“I got muh money in GOLD”
The rising price of gold (or the lowering value of paper money) means that the buyers of gold have lost confidence in the value of paper money. This makes sense, because Obama’s “stimulus” is guaranteed to drive the inflation engine, raising prices, and giving the illusion of renewed prosperity.
Thank you very much. I stopped the bleeding by moving into cash but know I have to start to move back into other areas. I’m stuck with Fidelity. They have a Select Gold fund (FSAGX) as well as Select Energy (FSENX) and Select Natural Resources (FNARX) fund that I’ve been watching. I’ve also started moving small money into their Select Natural (FSNGX)Gas fund as well. I can’t believe that the world’s oil producers aren’t going to get frisky and force energy prices up again.
What about biotech?
Ah, yes, get back into energy. I forgot about that one. I am buying gas on the dips through UNG (which tracks gas) and CHK (which is gas in the ground). The FSENX you are talking about is probably even better because of diversity. Also dollars are pretty high right now (a double top) so it is a good time to get in. My feeling is that natural gas isn’t going to go below $4. To me that is real energy, oil prices are more political.
The libs do seem to hate oil more than gas.
No wisdom except perhaps for diversity sake. Otherwise it is pure speculation. The more people pile into paper gold, the quicker it will drop after the peak. Then they will pile back in for another peak a year or two later. There will be one final blowout peak when everybody is in, but don't look for that until interest rates start to rise substantially.
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