Yes, the supply/demand statistics is compiled by GFMS, so I
suspect kitco just uses it. I am not going to speculate who
is buying gold, but somebody definitely is. Investment
demand is currently quite substantial and it's fluctuations
determine gold price to a large degree, which could even
suppress normal seasonal fluctuations in that market. It
is not unusual for gold price to be driven solely by investment
demand during it's final blowoff phase, which could last
years.
research.gold.org
While, yes, this could be fearful suckers buying in, and they
are, there are also reports of GLD holdings by large investors
such as Soros. As long as the number of
"fearful suckers" increases, so will gold price. -g-
Gold is being purchased because of the current government
bond crisis, which could end either in major monetization
or default. Physical gold can't be printed, and default
is not an issue either. Interest rates are ZIRP. Thus, gold
is simply safer than government bonds, and investment is
partially diverted from government bonds to gold. -g- |
