Wednesday, October 23, 2013
Eric Sprott of Sprott lectures the World Gold Council on gold demand
Sprott Globule Resource Investments Ltd. - Dear WGC executives, you suck and GFMS sucks.
Eric the Half-a-Bee asserts that core gold demand is 5200 tons a year, approximately 3000 tons more than yearly mine supply, and GFMS is woefully under-reporting demand.
His methodology seems to involve re-calcing everything from an ex-domestic-China perspective, and looking for non-GFMS data whenever possible. OK, that's fine, assuming China doesn't start dumping gold on the world market.
But in general, given his data, the fact that any house Sprott-sized or larger could arrive at the same result, and the fact that Sprott is a goldbug, I'd have to ask why the price of gold has fallen down to $1300 if what he says about supply-demand is true.
I question his methodology and would want to see his work before believing him.