Recent third quarter data from the World Gold Council showed that while gold supply fell 5%, demand (inclusive of investors) fell a much larger 34%.
Yet despite this negative disparity between supply and demand change, gold prices rose during the period.
Hard Assets Investor: Year-over-year demand has dropped in each of gold’s three market segments: for investments, off 46 per cent; for jewelry, down 30 per cent; and for industrial use, off 11 per cent.
Gold prices, however, have risen universally. In key markets such as India and Turkey, gold prices spiked 15 per cent and 33 per cent, respectively. In dollar terms, gold rose 12 per cent year-over-year, while euro prices rose 11 per cent.
The bull market may have put gold out of reach for many consumers. That may account for some of the renewed interest in “the poor man’s gold”—silver.