recycled gold contributed an average 39%
to annual supply flows. Interestingly, in
a recent Streetwise Report, Eric Sprott, a
consummate gold bull, argues that the data
the GFMS Gold Survey puts out, which the
World Gold Council uses as the basis for
its analysis, is flawed. He believes that the
recycling numbers and net investment
demand data are basically "fudge factors"
which make supply always magically equal
demand.
DECEMBER/JANUARY 2014
RW December 2013.indd 13
The CPM Group, a New York-based
independent commodities research firm,
believes the sharp decline in gold prices
in 2013 and the inability of gold to make
a strong comeback has resulted in many
market participants moving to the sidelines
to wait to see how low gold prices will fall
before they resume buying.
Once investors are convinced that the
bottom in the market is reached, there
should be stronger buying interest, which
should help push gold prices higher. CPM's
Gold Long-Term Outlook 2013 report forecasts that gold prices will weaken before
they scale to new record highs during their
projected 10 year outlook. n
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