What is the true demand for gold? How much is really available in any given year? Does supply and demand really determine the price of gold anymore? The Gold Report called Sprott and John Gravelle, global and Canadian mining leader for PwC, which produced the report for the World Gold Council, to find out.
Crude oil futures prices were under pressure during most of the week, as strong inventory builds and the increasing value of the U.S. dollar eroded crude oil prices. Production growth in the U.S. continues to outweigh solid demand.
Late summer, autumn and early New Year are the seasonally strong periods for the gold market due to robust physical demand internationally. This is the case especially in Asia for weddings and festivals and into year end and for Chinese New Year when China stocks up on gold.
Over the last few years, during the great investment demand for gold and silver, we have seen sporadic shortages in bullion coins. One of the fads is to decry supply issues in silver and now recently gold. However, the truth of the matter is less dramatic, if not quite so simple.
There is blood on the streets of the gold market with many speculators having been badly burnt. The smart money such as Einhorn, Paulson and Bass have not liquidated and have maintained their positions.
Stepping away from the pack, Andrew Coleman of Raymond James Equity Research is making a contrarian forecast for an oil glut in 2014. In this interview, Coleman explains his thinking and names the producers best positioned to capitalize on the turbulence ahead.