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.
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