Thursday, February 15, 2007

Gold Demand Up, Supplies Down

According to an article in the business section of theglobeandmail.com:

Demand for gold hit a record $65-billion (U.S.) last year, propelled by both investors and the jewellery industry, according to statistics compiled for the World Gold Council by GFMS Ltd.

But the supply of gold and tonnage sold declined.

I'm curious what this will mean for gold prices in coming years. They hit $721.50 an ounce in May and averaged $607 for the year. Will we be seeing that fabled $1000 an ounce mark in 2007? They've been talking about it for years.

If so, who will be getting rich in the resultant rush back to gold fields? Will it be the prospectors, the multinationals, the bankers, the traders, the guys selling shovels & mules, or will it be the folks selling mining claims on eBay?

Personally, I hope it's me, but I think I'd need to up the amount I'm finding each time out to have a hope at that. You never know though. A nugget the size of my head might be waiting around the next corner.

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