Mastering the Commodities Markets

SUPPLY AND DEMAND

Total supply versus fabrication demand

Gold

Table 8.1 shows that total supply (i.e. primary gold production combined with secondary supply – recycled scrap metal) was 4424 tonnes in 2011, a modest 1.7 per cent higher than 4350 tonnes in 2010. Total fabrication demand was marginally lower in 2011 at 2771 tonnes versus 2784 tonnes in 2010. However, the average gold price rose by 29 per cent from 2010 to 2011, resulting in a massive US$83 billion surplus of supply over demand.

Table 8.1 Gold supply v. fabrication demand

Source: Thomson Reuters; table courtesy INTL

Silver

Table 8.2 shows that silver’s total supply in 2011 grew ...