- The orange line tracks gold wanted as consumer products, whether jewelry, coins, small bars, bonding wire for the chips in your smartphone, or fillings for your teeth.
- The green line tracks what's left over – all of which, in the form that it's bought (or re-sold), comes in large wholesale-market bars, sitting in secure storage somewhere.
- Most crucially, the green line includes any 'surplus' between what the usual presentations report for supply exceeding demand. Because somebody must end up holding it. And like central banks growing (or cutting) their gold reserves, or gold-backed ETFs expanding (or shrinking) with shareholder interest, that 'surplus' will end up sitting in a vault somewhere, most likely in the form of 400-ounce Good Delivery bullion bars meeting the standards acceptable to central-hub London (and therefore the rest of the world's specialist vaults).
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Adrian Ash is director of research at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.
See the full archive of Adrian Ash articles on GoldNews.
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