A report from the World Gold Council ...
The WGC is transparent about who and what they are, read their comments with this in mind:
- The World Gold Council is the market development organisation for the gold industry.
- Our purpose is to stimulate and sustain demand for gold, provide industry leadership and be the global authority on the gold market.
- Based in the UK, with operations in India, the Far East and the US, the World Gold Council is an association whose members comprise the world's leading gold mining companies.
OK, bearing that in mind, they so make reasonable points:
- Indian Prime Minister Modi's move last November to "demonetize" around the equivalent of US$220 billion in large Indian bank notes sapped demand in the Indian gold market
- Add in an added 1% excise duty on jewellery manufacturing
- Resulted in 2016 Indian gold demand in 2016 to its lowest level since 2009 (to around 600 tonnes)
- For 2017, demand expected to be around 650 to 750 tonnes in 2017
- Then upwards to around 850 to 950 by 2020
Meanwhile, gold has extended its overnight drop here in early Asia today:
