3. Gold Global Demand (1st quarter of 2011) =
981.3 tons, up by 11% year-on-year from 881
tons in 1st quarter of 2010
Global Turmoil – Gold prices on all time high
& Gold demand for ETF’s doubled
41% of demand from India & China
Investment demand remains strong
4. Supply declined by 4% to 872.2 tons from
912.1 tons in the 1st quarter of 2010
Decline was due to recycled gold, which was
down 6% on year- earlier levels to 347.5
tonnes from 369.3 tonnes in the first quarter
of 2010
Supply has averaged approx 2,497 tons per
year over the last several years
5. Collapse of the U.S dollar
Gold returning to historic role as money
No other world currencies offer refuge
Massive deficits resulting in hyper-inflation
Invest Demand for gold rapidly rising
Gold is in an established powerful bull market
Relatively smaller size of the gold market
Large short positions (Speculation)
6. Culture of several countries
Hedge against inflationary wealth loss
Investment Diversification
Prosperity
Central Bank Reserves
High Inflation
U.S Dollar
Low Interest Rates
7. Lack of exploration of
gold
Change in Technology
Increase in the stretch
of demand of gold
Miners are holding
reserves of gold to clear their hedge books
Downfall in world economy & excessive
inflation