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« COMEX: Has it got the gold? | Main | Yamana gold Incorporated: Explanation of Current Performance! »
Thursday
Nov202008

Record Dollar Demand for Gold!

World Gold Council 20nov08

The quote below comes from The World Gold Organisation:

“Dollar demand for gold reached an all time quarterly record of US$32bn in the third quarter of 2008 as investors around the world sought refuge from the global financial meltdown, and jewellery buyers returned to the market in droves on a lower gold price. This figure was 45% higher than the previous record in Q2 2008.Tonnage demand was also 18% higher than a year earlier.

If you have the time there is a very positive interview with the WGC on BNN, just click this link to watch it.






The World Gold Council had an independent report prepared for them by GFMS Limited which concluded that demand had rose on the Swiss, German and US stock Exchanges despite widespread shortages of gold, with retail investment demand up 121% to 232 tonnes in Q3. It puzzles us that these reported shortages and the increased demand are not pushing gold to higher levels. Also, over at ebay we understand that coins and bars are fetching much higher gold prices as the scarcity of gold coins and bars drives up premiums.

EFTs are playing a major part as a popular investment vehicle and the report had this to say about them:

“Gold ETFs enjoyed a record quarterly inflow of 150 tonnes in Q3, boosted by extreme levels of economic and financial uncertainty. The peak in inflows occurred in late September, triggered by the collapse of Lehman Brothers and a fear of banking sector failures. Net inflows surged by an unprecedented 111 tonnes during 5 consecutive trading days, equivalent to US$7bn.”

Chief Executive Officer of World Gold Council, James E. Burton, added the following comment:

"Looking forward, given the uncertainty that surrounds the global economy, gold’s safe haven appeal should continue, but so too will the possibility of heightened levels of activity in the speculative side of the gold market, therefore it is too soon to call an end to market volatility."

This is all very positive but it does raise the question of whether the investment community now prefers the relative safety of an EFT to the highly risky business of mining.


The World Gold Council (WGC), a commercially-driven marketing organisation, is funded by the world’s leading gold mining companies. A global advocate for gold, the WGC aims to promote the demand for gold in all its forms through marketing activities in major international markets. For further information visit www.gold.org.

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Reader Comments (18)

degraaf watch now as gold stocks start taking off now!

November 20, 2008 | Unregistered Commenterwil

Wil, I also think their might be a significant rally soon.
But just look at those futures. Hedgefunds are short dollar/long commidities. The reversal of that carry trade keeps pushing down the price of gold.

I also see the fundamentals. Their excellent. Unfortunately gold is 'only' being 'seen' as a safe haven for now. So gold acts as a hedge against the stock losses. This does not represents gold's actual value, the value where it should be corrected for inflation since the 80's.

Don't forget the pressure on gold which still is out there in the coming months. The IMF needs money, and without it, they could be starting selling gold reserves, as a last resort.

Indeed Wil, were up for a rally so its seems by the numbers. And quite a reasonable one probably.

One thing; I don't expect to see the miners rally to the price levels we used to see. So alot of us are not making real money. It only dampens the pain senses...if you know what I mean.

November 21, 2008 | Unregistered Commenterde Graaf

congrats degraaf if you held gold ! what a day today huh!? whatta i tell ya ! awesome ! huh? yessssssssssssssssssssssssss !!!!!!!!!!!!!!!!!!! sweeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeet!

November 21, 2008 | Unregistered Commenterwil

Your response is like you just won the lotery.

What a few cents a day can do to a man...unbelievable ;)

brgds

November 21, 2008 | Unregistered Commenterde Graaf

a few cents ? kgc up 29 % !auy up 22 % ! aem up 21 % ! randgold up 24 % ! paas up 30 % ! exk up 21 % ! hl up 34% !ssri up 23 % and yes i own all these ! UNBELIEVABLE someone can call this " A FEW CENTS " LOL

November 21, 2008 | Unregistered Commenterwil

deflation ? huh? the govt will try to avoid this as much as possible BY PRINTING MORE MONEY ! WHICH DEVALUES THE DOLLAR ! WHICH IS GOOD FOR GOLD AND GOLD MINING STOCKS ! enough! of these long winded explanations which are just hogwash and not to the point ! PLEASE! its so simple ! the dollar will not be able to maintain its strength! watch and see! now is the season gold takes off,,,,october is usually the bottom for stock markets-MOST OF THE TIME- buffet was SO RIGHT ON! he called close to the bottom of the market 10-18-08 had you bought then you would be currently having excellent gains on these gold stocks ! look at their 52 week low -most occurred SOON after buffett called the bottom! SO SIMPLE YET THE MASSES WANT MORE THEORYS ON INFLATION ,DEFLATION ,RECESSION BLAH BLAH BLAH! IMPORTANT THING IS WHEN TO BUY,WHAT TO BUY AND WHEN TO SELL! sell when ? we usually buy after labor day usually low occurs in october ,we wait for buffet to say buy and sell before summer time -when precious markets slow down -take your profits and wait till october november when buffet says to buy ! SO SIMPLE ---TOOK ME LOTS OF TRIAL AND ERROR LOST MUCH IN BRE X DAYS --TOOK MUCH TO LOSE TO FINALLY FIGURING IT OUT !

November 23, 2008 | Unregistered Commenterwil

That, in essence, is the divine that seperates us.
You (in your own words) simply follow Mr. Buffet. How you get by your knowledge to invest in commodities, is something I can't place in context to your fanatic Buffet religion.

I for instance have my own opinions and use others (incl. Buffet) to make investment decisions. Never will I trust on one person. More like a few dozen of 'experts'.
The knowledge I receive is used to complement my total world view and use in to my advantage, using historical events and future trends and developments, business ethics, morality, investor psychology, emotions of the populace etc.

That makes me and allrounder in my opinion, and you a follower. I prefer the first.

For a follower and (long-term) value investor you then would be; you should listen better to your divined investor... http://seekingalpha.com/article/10162-warren-buffett-warns-on-commodities

;)

November 23, 2008 | Unregistered Commenterde Graaf

buffett..... when he says to buy i use his advice as WHEN to buy and when he states BUY it is not just his stocks -it is the WHOLE MARKET IN GENERAL THAT IS AT A LOW WHEN HE SAYS BUY DEGRAAF ....not just his stocks ... lets see if the dozen of your advisors can call a better buy time opportunity than buffett!...LOL... im sure all of your advisors PUT TOGETHER have just as much money gained from investing as mr buffett has huh degraaf??? you say i just follow buffett -ive had many a newsletter-dines,hard rock analyst,david morgans silver newsletter,jay taylors newsletter,paul van eeden,lawrence roulstons newsletter,yes even doug caseys newsletters.....NONE of them give as good timing advice as buffett as when to get into the market-AND OH YES BUFFETTS BUY SIGNAL IS FREE-ITS IN ALL THE MAJOR NEWSPAPERS DEGAFF...FREE JUST LIKE THIS SITE LOL! ---oh they all tell you what to buy but as WHEN to buy-none of them comes close! AND as to what to buy ive found out from EXPERIENCE - MY OWN EXPERIENCE -THAT you are better off buying QUALITY STOCKS that are in indexes - more buying exposure and safer stocks-- like the ones in the gold bug index that are unhedged stocks from the hui index than so much risky iffy stocks that are contained in the newsletters i mentioned and that are a waste of money..stocks in major indexes-those are the ones to buy! amex gold bugs index-hui-some from the xau index -philadelphia gold and silver index...stocks from the gdx index-the goldminers index....some from the cboe gold index,,,,yes even some from the dow jones us coal index...want more good advice degaff ? i dont see you posting any that is helping anyone make money here degaff---how about the amex natural gas index -symbol -xng -degaff -ever heard of that one degaff???? until i see you posting anything here that helps us make money youre just alot of hot air degaff--maybe geothermal...are you in the geothermal index degraaf??? hahahahahaha

November 23, 2008 | Unregistered Commenterwil

just to show everyone im legit and not just posting FLUFF like degraaf--stocks such as barrick symbol abx ,anglogold symbol au, goldfields symbol gfi,goldcorp symbol gg ,harmony gold symbol hmy, newmont symbol nem ----all these are in major indexes which many people follow and are all good quality gold stocks that will do well and yes have been doing well as well as alot of the stocks covered on these gold silver uranium websites---my advice first buy quality stocks -like denison and cameco from the uran website buy the stocks listed in indexes which the big players -institutions-buy-they buy the indexes and as the indexes go up so do the stocks that are contained in the indexes---buy stocks that are on only the canadian exchanges LAST -you may not want to even buy them cause there are so many good quality stocks that are listed in indexes that are covered on both the us and canadian exchanges--case in point -check the stocks on this gold site---on friday during the rally hrg.to was negative! slglf was miniscule in percentage gain compared to the stocks aem,auy,gold and kinross which are all in major index funds ! and oh yes frg is in the sp/tsx capped metals and mining index and that one did awesome also ! lol! stay away from over the counter only stocks -like slglf -that has been covered on this site-there are too many good quality stocks that are contained in major indexes that are so much better and will do better without all the risk like slglf and stocks that trade just on the vancouver exchange -those stocks that have the symbol v after their symbol and the ones with to after the symbol THAT ARE NOT ON THE MAJOR USA EXCHANGES! damn damn damn ! good advice for anyone from lots of EXPERIENCE !! MY OWN PERSONAL EXPERIENCE DEGRAFF---lets see you recommend better degraaf!

November 23, 2008 | Unregistered Commenterwil

look at him spout fluff---historical events,future trends and developments,business ethics,morality,investor psychology,emotions of the populace hahahaha so much fluff like in the crazy newsleters ha -im sure we all can make so much more money now from reading all that ! lol! how this site let you post on one of their sites your full of fluff garbage that stated the exact opposite than what they are stating is mindboggling ! how much did you pay them to comment on this site degraaf? lol you guys will make so much more money now reading his fluff than the excellent advice i offered! hahahahahahaahahahha full of hot air he is

November 23, 2008 | Unregistered Commenterwil

oh please share some excellent knowledge with us mr.degraaf that will help us all make soooooo much more money ! please lets hear some from the expert ! we are all waiting what should we do next? listen to you spout fluff that makes you sound oh so smart!

November 23, 2008 | Unregistered Commenterwil

Wil, can't you write everything in one comment at once?

You will never see me post investment decisions. You can expect posts that make you 'think' on your own. I supply food for thought. No picks in general, nor my own.

Thomas Friedman said it something like this today on CNN;
There are two people who I admire most. Warren Buffet and King Ibn Saud from Saoudi Arabia.
Buffet invested in Goldman @ $115 a share, now around $50 a share. Saud invested in Citigroup, now only at $10 a share and on the brink of selling off their holdings.
Friedman experiences both men are overwhelmed by the hugeness of this unprecedented crisis.

I agree with Tom Friedman.
You just can't time the bottom with so much leverage in the system, not to forget the influence of globalization and possibly more factors.

This gives you to think...should I be invested right now? Or should I watch it unfold completely before putting my precious money in the markets?
There are more signs of a depression-like event. Even deflation is not yet out of the equation, considering some experts.

Finally, I let others decide how they think about my writings and comments. So far, more good reactions than no reactions at all considering your responses... Without any good quality arguments, an investment pick is not worth anything.
For all I see, I'm the only one answering your unreadable dense lines of text, which ends from here on by the way.

ps; Have you never heard of alinea's and opens spaces for easy reading? Next time, I skip your jungle of words. You should also skip mine... hasta la vista Willy, lonely ranger. :)

November 23, 2008 | Unregistered Commenterde Graaf

what separates you from me degraaf is that I AM SMART FROM EXPERIENCE AND YOU JUST SOUND SMART TRYING TO LOOK SMART AND PERHAPS ARE TRYING TO GET SUBSCRIBERS FOR YOUR CURRENT/FUTURE NEWSLETTER YOU ARE PUBLISHING OR ARE ATTEMPTING TO PUBLISH ! you sound like a newsletter writer full of hot air with no real quality advice-just trying to sway the masses with no real advice that will help anyone make money ............

November 23, 2008 | Unregistered Commenterwil

oh please stop me its just to easy pounding this buffoon into the ground with whats so ! oh im starting to feel guilty now! oh the pain ohhhhhhhhhhhhhhhhh lol!

November 23, 2008 | Unregistered Commenterwil

i could care less what buffetts stocks are doing ! IM LOOKING FOR ENTRY SIGNALS INTO THE MARKET FROM BUFFETT DEGRAAF thats all! i dont care what he invests in ! i invest in metals coal commodities whether he thinks its good or not--- buffett is the best market timer around ! thats one of the reasons he has made so much money cause he knows WHEN to buy ! TIMING IS EVERYTHING ! cant i write everything in one comment at once? oh i dont look so eloquent in my writing style like you but what i have to offer and stated will help the masses reading this instead of your fluff that just makes you sound smart ! right we never see your investment decisions because you have none that are worth reading degraaf! you are full of hot intellectual worthless air ! you have given up because you have nothing really worthy to say ! no mas he says no mas with just empty words that help no one here except to boost his ego and his alone ...............oh i feel so sorry for that lonely soul ...wahhhhhh

November 23, 2008 | Unregistered Commenterwil

at nov.21 3:31 pm he posts wil ,i also think their might be a signicant market rally soon ! at 3:31 -a half an hour before the market closes ! it ALREADY was in a rally from the open of the market at 9:30 am! at 1:15 am BEFORE the market opened i stated degraaf watch now as gold stocks start taking off now ! that was more than 8 hours before the market opened ! my not so eloquent writing style vs the fluff of degraaf -YOU DECIDE WHICH HELPS YOU BEST ! if out to state to help all ---degraaf states out to make himself look good by his fluff and writing that has no substance and really helps no one make money here! what do you guys want ? to hear fluff or to hear advice that will help you make money like this site was intended to do?????

November 23, 2008 | Unregistered Commenterwil

he states gains of 29,22,30,34 percent IN ONE DAY AS PENNIES! how ridiculous he denies that percentages like that in one day as pennies ! i would like to hear what he considers a good gain in one day ! most investors would consider gains like that for a year to be excellent!

November 23, 2008 | Unregistered Commenterwil

if its so that no one else will comment on my helpful advice it just goes to show how brainwashed most of the masses are in regards to what will help them and what is worthless information like degraaf states....i could care less if anyone comments or not----all my advice has helped me and my family out immensely in our investment decisions--ive learned alot not just from buffett but from others as well-as well as the newsletters ive mentioned but for the most part most of it was fluff like what degraaf mentions and investing in sucker stocks that most if not all are very very risky most of the newsletters mention...more losers than winners on the vancouver exchange or toronto only stocks that are not on usa major exchanges...do yourself a favor -investigate for yourself what ive said --youll see what i say is so--dont take my word for it -check it out yourself-you can learn from the experience i experienced-that contained many mistakes along the way-you dont have to make the same mistakes i did...check out my advice -very sound-not the fluff you read of degraaf or some nonsense newsletters...

November 23, 2008 | Unregistered Commenterwil

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