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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (68035)	4/20/2001 11:25:34 PM
From: goldsheet	Respond to of 116762

Well, I bored everyone to death last year about how mine production was NOT declining despite lower prices, and GFMS confirmed it in their latest survey. Primary mine production was actually UP in 2000 to a new record of 2573mt (2569mt in 1999) Even I was not so bold to predict an increase, I figured it would be around 2500mt. Even more interesting was the 200mt decline in demand to 3946mt. This closes the gap between mine production and demand to 1373mt (was as high as 1756mt in 1997 and has declined every year since), making it easier to fill from scrap, central bank sales, disinvestment, etc.. Scrap and CB sales were relativley flat, 611mt and 471mt, respectively. Disinvestment (Europeans selling coins and bars) was a huge 291mt On the demand side, coin production plummeted from 133mt to 33mt. I keep thinking if the economy stays weak demand is likely to continue to decrease more than mine production, hence even a smaller gap in 2001. Someday the gap will cause a problem, but I think it just got delayed another year. REF: gfms.co.uk Check out the April 19th Gold Press Release