gold supply & demand (for nous)

  1. 9,081 Posts.
    Hi Nous .... earlier on you posted the following:

    "If gold price passes US$500 and stays there,you'll see an increase in gold mining production by orders of magnitude (of course it won't happen overnight).
    If it hits US$1,000 you might even see extraction of gold out of seawater (maybe a bit overfetched an illustration).
    My point is,there is and has always been no extended period of shortage of any raw material in demand and wo'nt be in any forseeable future"

    It's not often that I come across such an ill-informed comment.

    Consider the following and maybe re-think your position:

    "Interesting news regarding demand for Gold:

    "World gold consumption is set to increase by 300 to 400 tons a year over the next five to ten years, as a result of new industrial applications of the metal, according to the World Gold Council, concludes Conradie."
    http://www.miningweekly.co.za/min/utilities/search/?show=38507

    So what can we expect upcoming years regarding demand for Gold ?

    1 - Chinese Gold Market is expected to generate an additional demand for Gold of 400 ton/year (conservative estimate)

    2 - Introduction ETF’s for Gold are expected to generate an additional demand for Gold of 400 ton/year as well.

    3 - Industrial applications are expected to generate an additional demand for Gold of 400 ton/year as well.

    This brings us to a mind boggling increase in demand for Gold by at least 1000 ton/year.

    This will increase the total demand for Gold to at least 5000 ton /year.

    Knowing that the current production of 2.500 ton/year will drop by 30% to less than 2000 ton/year by 2010 only the complete brain dead people will continue to believe that this Bull-market in Gold won’t last!

    Eric, Bill Murphy, LeMetropole, 8-8-2003"

    Have a good evening.
 
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