Those familiar with my writings know one of my pet peeves is the financial press' tendency to bash gold every chance they get. Gold drops below $1200 and the question arises, has the gold rally come to an end? Gold goes back up over $1200 and there is no comment as it is hard to talk with foot in mouth.
Then gold climbs a little higher and someone recalls the bursting gold bubble of 1980 and says, never again will they invest in gold. When will they learn
Meanwhile, the economic data continues to disappoint the same group of people who believed in the jobless recovery. Now even the Fed is bewildered. I ask, if the Fed is bewildered now, what are we to think of any plan they put on the table to bring about real recovery?
Bottom line is uncertainty prevails, and despite what the financial press tries to report, gold demand is skyrocketing. Think back to Q2 and recall all the times the stamina of the gold bull market was called into question. . . . . . . Are you done?
Now read the facts about Q2 gold demand as released by the World Gold Council today.
- Over the longer-term, demand for gold in China is expected to grow considerably. A report recently published by The People's Bank of China and five other organisations to foster the development of the domestic gold market will add impetus to the growth in gold ownership among Chinese consumers.
- Total gold demand in Q2 2010 rose by 36% to 1,050 tonnes, largely reflecting strong gold investment demand compared to the second quarter of 2009. In US$ value terms, demand increased 77% to $40.4 billion.
- With the return of demand for consumer electronics, industrial demand grew by 14% to 107.2 tonnes, compared to Q2 2009.
- Global jewellery demand remained robust in Q2 2010. In the face of surging price levels, consumption totalled 408.7 tonnes during the second quarter of 2010, just 5% below year-earlier levels.
For more data on gold demand visit the World Gold Council site here.
As you will see, gold demand on all fronts, from investment to jewelry to industrial demand, worldwide, is growing. If you want to learn more visit Lear Capital for the most competitive online pricing for gold along with a wealth of free market and economic reports.