2011-12-27

Who's buying gold?

Here's a link to the Q3 gold demand trends report from the World Gold Council. More research can be found at this link.


Total consumer demand is up, but jewelry sales are down everywhere except Japan, China and Russia. Total demand fell in India, the Middle East, the U.S., Italy and the U.K. Total U.S. consumer demand was 52.4 tonnes, less than Turkey. Vietnam and Thailand combined to buy more gold than the U.S., almost all of it investment demand. India and China both had demand of about 200 tonnes, or each about four times U.S. demand, for a combined 8X. U.S. demand is about 6% of the market, while India and China are close to half.

I have said it before and I say it again, if gold is a bubble, the place to look is China or India, not the U.S. Anyone focused on U.S. gold demand, be they bull or bear, is watching the wrong market.

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