Tuesday, June 14, 2011

Production Numbers All Argue, June 14 2011

Washington’s Blog
As legendary investor Jeremy Grantham notes, copper production is falling:

As I’ve previously noted, gold production has also been falling:
Reuters India noted on March 29th:
China’s gold demand is expected to double over the next decade due to jewellery consumption and investment needs, the World Gold Council (WGC) said in its first report on the world’s fastest growing consumer of the metal.
If the central bank boosts gold holdings to 2.2 percent of forex reserves, a peak level seen in 2002, from the current 1.6 percent, China’s total incremental demand would rise by 400 tonnes at the current gold price, the WGC report said.
China’s share of global gold demand doubled from 5 percent in 2002 to 11 percent in 2009, and the council predicted that China’s domestic gold mines could be exhausted within six years.
“The Chinese gold industry is simply not responding fast enough to bring in new supply,” it said.
more HERE

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