With emerging market central banks buying gold as it becomes available on top of other buyers in the market, the supply of gold at 4,000 tons or so (around 1,600 in scrap and the balance in newly-mined gold) is barely sufficient to meet current demand. Gold-buying is quite efficient as its price has soared almost 400% since 2000 making it a reliable asset. Analysts expect gold to advance again, to $1,825 by the end of 2013.
While Russia and other emerging markets are buying gold, developed nations are liquidating. Switzerland unloaded the most in the past decade, 877 tons, an amount now worth about $48 billion, according to International Monetary Fund data through November. France was second with 589 tons, while Spain, the Netherlands and Portugal each sold more than 200 tons.
Increased output by Russia could see it surpass the United States as the world's third largest gold miner by 2015. Russia has the world's second largest gold reserves after South Africa, an estimated 10% of global reserves. In 2012, Russia was the fourth largest gold producer with output of 226 tons, up 7%.
SOME GOLD TRENDS
- 1. We expect all sellers and buyers of commodities and their representatives to be registered and licensed companies.
- 2. Once a company meets these requirements, discussion will then focus on the quality of the commodities and the seller's ability to follow international and standard procedure.