Coming back to gold, Sprott questions how supply can possibly be keeping up with demand given that new mine supply has been virtually static at around 4,000 tonnes a year, Central Banks, which had been selling around 400 tonnes a year are now buying around 500 tonnes a year (a net turnaround equivalent to nearly a quarter of total gold production), a huge increase in demand in China and continuing high demand levels from India).
His attested viewpoint is that this supply can only be coming from leased gold from the Central Banks entering the market through the bullion banks – which then begs the question of how much gold the Central Banks actually have left – and how long this situation can continue.
Read the complete article at Mineweb here.
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