Thursday, 22 May 2008

Another comment from me to this posting:
Gold s Outlook back to $650-$750 area by Victor Adair
that refers to this 'interesting' gold bearish interview:

My comment was posted here:
Re: Gold's Outlook back to $650-$750 area by Victor A ...

Nadler says that Indian gold demand was down in 2007. I thought it was a record! See this article for instance:

It was already 689.7 tonnes by the 3rd Quarter, then it was down in Q4 2007 because of the high price. Projection on this article was 110 tonnes in Q4 2007 giving a total of 800 tonnes for 2007. However, wasn't it still a record? Nader says it was down a lot from the previous year. I think this is rubbish, but I am not 100% sure.

OK, so Indian demand was very low in January 2008 and low in Jan-Mar 2008. It was also very low in early 2006 just the same during the spike up to $730. The next year was a record if I am correct. So they bought more in 2007 at an average of £$650 than in 2001 at an average of $270!

This Nadler guy is a perma Fed bull and a gold bear. Maybe jewellers don't like expensive gold because it erodes their premiums! That is true for semi-numismatic coins. The premiums tend to erode as the price spikes. For jewellers, falling premiums = falling profits. I think we are seeing the gold users calling for a top in gold because the high gold price erodes their profits.

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