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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (32430)	11/18/2004 6:18:07 PM
From: russwinter	Respond to of 39344

Review of annual gold production and traditional demand: galmarley.com

To: russwinter who wrote (32430)	11/18/2004 9:08:44 PM
From: Wyätt Gwyön	Respond to of 39344

To put this in perspective 400 tonnes (roughly $5.7 billion) is the amount of annual central bank gold sales under the so called Washington Agreement on Gold (WAG). that is similar to the annual "investment demand" for gold. the UK and Aussie gold ETFs have apparently purchased around 60 tonnes of bullion, and US could be 10x that.

To: russwinter who wrote (32430)	11/18/2004 9:22:42 PM
From: Taikun	Respond to of 39344

Russ, On that website the ounces are reported at 260,000. If the fund started with 230,000 It appears they added 30,000 ounces, or just under 1 ton the first day. I saw some estimates of the gold demand by the ETF at around 500 tons/yr, so assuming around 250 trading days they'll need to add 2 tons/day to hit that annual number. I suppose at the beginning the 7.15 tons skews the data somewhat and maybe after a month of sessions we'll have a clearer picture but given the pent-up demand (people have been waiting a year and a half for this) I honestly expected way more volume. David