Global gold supply experienced a two per cent fall in the 12 months to September 2007, according to a new report.
The Gold Investment Digest from the World Gold Council (WGC) said that mine supply fell to 2,145 tons, while mining production stayed stagnant at 2,504 tonnes, Mineweb reports.
This tightening could see gold bullion rise in value as a result - marking good news for those with gold investments.
De-hedging could stay at the fore this year as a result of AngloGold Ashanti's revealing last month that it is to close out its 330-ton hedge book, the Gold Investment Digest said.
It stated: "According to Virtual Metals, the global hedge book was reduced by a further 2.1 million ounces (65 tons) in third quarter 2007, reducing the hedge book to 29.1 million ounces (905 tons) from 101.4 million ounces (3,153 tons) in mid-2001."
Earlier this month, the WGC noted that the recent surge in gold prices can not only be attributed to short-term factors such as the weak dollar and high prices, but also to longer-term drivers including the higher cost of gold extraction and strong demand for jewelry.
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