Gold Production Is Falling
Interesting table, and statistics in The Economist: global gold production fell 4% in 2008. In many gold producing countries, including China, Russia, Peru and Mexico gold production rose, but that was not enough to compensate declining production in the United States, Canada, Australia, Indonesia and Australia.
This statistical fact is of course bullish for the price of gold (which I know many readers are interested of), especially if the trend continues.
This statistical fact is of course bullish for the price of gold (which I know many readers are interested of), especially if the trend continues.
posted by stefankarlsson at 10:13 PM
3 Comments:
It's not bullish per se. The production of gold represents a tiny fraction of the total outstanding bullion. The fact that printing is going on everywhere will be bullish eventually.
It *IS* bullish per se. A lower increase in supply will always raise the price.
It is true however that demand factors are more important, but that's why I only wrote that this fact was bullish, not that the price of of gold will necessarily rise from its current level.
South Africa had it´s lowest gold production for over a hundred years.
Discounting coming rise in inflation will increase the gold price.
Gold Stock will rise more, however.
Göran, Sweden
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