Let me start of with the following article regarding demand supply for gold for 2009

http://www.financialsense.com/editorials/phillips/2009/0226.html

Originally posted by jainsumit3 So sir where do u c gold from now (900$)were it has corrected around 20$ yesturday

Sumitji,
I cant predict gold price on a daily basis. I can only tell you that in the long run fiat money loses its buying power and classically it has been observed that in a recession/depression commodities have done well.
Also if you go by Jim Roger's statements that Equity Bull run was over in 2000 and commodities cycle has started from 2000 then Gold should do well.

The below graph shows the gold sales pattern for the past 4-5 years.
http://www.iaconoresearch.com/BlogImages/09-03-24d_gold_demand.png




Gold prices is artifically kept low by various govts (by leasing and selling). This creates a perception of lack of demand for the metal. But once people ask for delivery of Gold, defaults start happening and gold prices rise.

So going by the above chart we see that the actual demand for physical gold is going up. This only goes to prove that people dont believe in Gold futures. If the trend continues then the price of gold has to go up.




Edited by MissingLink - 26/Mar/2009 at 10:01pm

A lot of the run up in the price of gold is due to the inflation fears and future uncertainty. With markets around the world rallying money will move out of gold into other markets.

Originally posted by Mohan A lot of the run up in the price of gold is due to the inflation fears and future uncertainty. With markets around the world rallying money will move out of gold into other markets.