{"id":409410,"date":"2010-03-09T21:18:49","date_gmt":"2010-03-10T02:18:49","guid":{"rendered":"http:\/\/www.businessinsider.com\/why-has-gold-been-such-a-dog-its-as-simple-as-supply-and-demand-2010-3"},"modified":"2010-03-09T21:18:49","modified_gmt":"2010-03-10T02:18:49","slug":"why-has-gold-been-such-a-dog-its-as-simple-as-supply-and-demand","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/409410","title":{"rendered":"Why Has Gold Been Such A Dog? It’s As Simple As Supply And Demand"},"content":{"rendered":"

Okay okay, maybe calling gold a “dog” is a little much, and yes you’d be write to point out that against euros and pounds it’s doing quite well. But considering the wild-eyed predictions we heard only a few months ago, and the fact that it really hasn’t gone anywhere in dollars in ages, gold does feel like dead money for now.<\/p>\n

So why hasn’t it lived up to the hype?<\/p>\n

Maybe it’s just a matter of — gasp — supply and demand.<\/p>\n

Here are a couple of charts from Julian Murdoch at The Bullion Vault which may tell a lot of the story.<\/p>\n

The first is gold demand over the years:<\/p>\n

\"gold\"<\/p>\n

Notice anything?<\/p>\n

Yes, in terms of tonnage, demand went down, and in dollar terms, gold demand stayed flat from 2008-2009.<\/p>\n

Now here’s another chart. This time supply:<\/p>\n

\"gold\"<\/p>\n

Now here we have the opposite: 11% y-o-y growth, with big gains seen in mind production, recycled gold (Cash4Gold!) and less producer dehedging.<\/p>\n

So supply’s up and demand’s flat. Any questions?<\/p>\n

Read more at The Bullion Vault ><\/strong><\/a><\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n