Gold News

Gold investment still strong in Q4 2008 'on short supplies'

A group of top analysts have today (November 27th) expressed their belief that gold investment is being supported by gradually dwindling supplies of the metal around the world, Mineweb reports.

Catherine Gignac, Paolo Lostritto, John Miniotis and Ryan Walker, all from Toronto-based institutional equities firm Wellington West Capital Markets, conducted a thorough study into gold trading for Q3 of 2008.

Corroborating recent figures from the World Gold Council, they found that physical investment demand was up 179 per cent during the quarter, but also that supply was markedly restricted.

"Severe stock shortages of bars and coins were reported among bullion dealers in many parts of the world," they told the news provider.

"A continuation of strong gold investment demand has been seen so far in Q4/08, leading to the Perth Mint being forced to suspend orders until January."

In addition, they claimed that their data reveals that a Central Bank Gold Agreement signatory "has become a gold buyer, putting further pressure on the existing supply deficit in the bullion market".

Such production fears were echoed recently by AIM-listed China Goldmines, which has forecast a 75 per cent cut in output for 2008 - a situation which would push gold prices higher if repeated in other major mines.

For the very best Gold Prices - live online - plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals