Wednesday, April 3, 2019

While consumers may not be buying gold bullion en masse in the West, gold jewelry sales are expected to reach a four year high

Contrary to Wall Street's long-standing propaganda that gold holds no function in one's wealth portfolio, it is interesting and even quite hypocritical that central banks have been purchasing the metal at their highest levels since Nixon took the dollar off the gold standard.

Likewise while the gold price has remained depressed thanks to manipulation on the part of the paper gold markets, a new report out shows that despite the fact that consumers may not purchasing gold bullion en masse, they certainly are buying tons of gold in jewelry form.


Increased consumption by jewelers is expected to boost global demand for gold to its highest level in four years, an annual report by Metals Focus reveals. 
One of the world’s leading precious metals consultancies expects the global consumption of gold to reach 4,370 tons in 2019 – the highest since 2015. The projected quantity is slightly up from 4,364 tons consumed last year. 
Global gold supply is projected to see a modest increase of one percent to 4,707 tons in 2019. Growing production of the precious metal in West Africa, Canada and Russia will be reportedly offset by lower production volumes in South Africa, China and Indonesia.
Consumption of the precious metal for jewelry is forecast to rise by three percent to 2,351 tons, boosted by increases of seven percent in India and three percent in China. The world’s two biggest gold consumers will reportedly offset lower demand in the Middle East. 
The report titled Gold Focus 2019 notes that gold purchases by central banks, which saw enormous growth of 75 percent last year, will drop nine percent to 600 tons in 2019, while physical investment demand will remain mostly unchanged at 1,082 tons. – Russia Today
Perhaps what stands out as well in this consumer push for the precious metal is the fact that gold exploration and production have begun to fall through the floor since 2017, and there are real signs that Peak Gold has emerged, making this report another canary in the coal mine that demand for gold will continue to outpace supply.

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