The latest tracking of gold being consumed in China and India has revealed a declining demand. Mainland China’s demand for gold fell 18% in the first quarter of the year as investors bought fewer bars and coins, offsetting record demand for jewelry, according to the latest trend report from the World Gold Council based in London.
The World Gold Council reported that Chinese purchases declined to 263.2 tonnes, despite a 10% rise in jewelry consumption to a new record levels. The decline in investment demand for bars and coins was a staggering drop of 55% to 60 tonnes.
Meanwhile, there remains the insistent forecasts of some who still argue that Gold, and nothing else, is going to $50,000 while retaining its full purchasing power, based on arguments on the Central banks balance sheets how they are accumulating Gold and SDR in their assets holdings. This of course is just insane. It does not even grasp that government is going in the opposite direction raising taxes, hunting money, and by no means would ever adopt a gold standard for then politicians would have to stop rolling out unfunded programs. This nonsense will continue to cause massive losses among the naive and once they lose their shirt, they do not return so easily.
