A closer look at the current state of the gold market's fundamentals might be helpful in getting one back on the proverbial track and cutting through all the noise being made by alarmist hard money news letters and book-talking, newly minted market gurus. According to the latest statistics published by the World Gold Council, mine supplies of gold experienced a 7% year-on-year gain in 2009, rising to 2,572 tons. To sum up, total gold supply for 2009 was up by 11% at 3,890 tonnes, while total demand was down by 11% at 3,386 tonnes. The silver market offers a similar picture to gold as it too is a market in surplus, heavily dependent on investment off take, while also experiencing a primary fabrication demand decline. Meanwhile, heavy demand from newly created platinum and palladium ETF vehicles helped push the noble metals' prices to new heights recently, reaching pinnacles not seen since the 2008 bull run.
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"Fundamental flaws: All that glitters may not be gold"Please download to view full document