Gold prices will continue rising
Gold mining companies to produce less; supply decreases to drive prices
Early Wednesday, May 21, 2008, crude oil rose to a then record price of $132 per barrel on the New York Mercantile Exchange Dianabol Muscle Labs Usa For Sale as the Department of Energy reported a decline in crude inventories following four straight weeks of gains. On news of the declining crude inventory the Dow Jones Industrial Average dropped approximately 100 points. The Dow had dropped nearly 200 points on the previous day on concerns about rising oil prices and inflation. The rise in crude prices on Tuesday was probably influenced by the prediction made during a morning interview on CNBC with billionaire oil investor, T. Boone Pickens, who predicted that oil will rise to $150 per barrel in 2008.
As expected, with the rising price of oil, the US dollar declined and the price of gold rose to $930 an ounce on Wednesday, its highest level in nearly a month.
Overnight oil prices moved over $135 per barrel before pulling back. The decline in the oil price was followed by a decline in gold and a weakness in the dollar. Refer to Figure 1 (30 Day GOLD vs. Equipoise Ethics EURO/US$) below that displays the price of GOLD and the EURO/US$ ratio over the last 30 days.
Will the upward movement in the gold price be short lived? On Tuesday, May 20, 2008, the World Gold Council (WGC) reported that demand for gold has dropped to a five year low as record gold prices "Achat Anabolisant Belgique" and a slowing US economy have reduced gold purchases for fabrication purposes. Jewelry demand was down by 21% year on year to 445 tons, the lowest quarterly level since 1992. The only area in which the demand for gold hasn declined was "Buy Cheap Jintropin Online" for investment purposes as a hedge against inflation.
According to the WGC, global use of gold in "buy cheap jintropin online" the first quarter was 773 tons of gold. This was a decline of 16% from the year earlier quarter. Consumption in India, the biggest consumer, was down 50% to 112.5 tons. The only increases "Oxandrolone Powder India" in consumption were seen in China (up 15%), Egypt (up 15%), Russia (up 9%), and Vietnam (up 71%). The usage by China was 112.1 tons, nearly the same as India
India is the most price sensitive gold consuming country in the world and has for the last seven years maintained a 20% market share of the world demand for jewelry. In the first quarter consumption in India, as noted above, dropped 50% in terms of tonnage and 28% in terms of dollars.
The demand for gold in Vietnam doubled to nearly 35 tons making it the largest investment market for the quarter.
Gold supplies in the quarter increased 11% to 901 tons as metals from recyclers increased by 30% and sales by central banks increased by 8%. GFMS, the leading precious metals consultancy, released its annual review, Gold Survey 2008, and reported that mine production in 2007 was at an 11 year low, and in the second year of decline. The decline in mine production will in time lead to supply Buy Cialis Norway concerns which will sustain, and lead to higher gold prices
In 2007, South Africa, the world leading gold producer since 1905, was overtaken by China following years of declining production.
On Thursday, May 22, 2008, at a gold conference in Peru, Nick Holland, CEO for Gold Fields Ltd. (NYSE: GFI, ) reported to Reuters that the company expects to miss its gold production forecast for the year by 15% because of continuing power shortages in South Africa. Gold Fields is the world fourth ranked gold producer. The company now expects to produce 3.6 million ounces, down 650,000 ounces from its earlier projection of 4.25 million ounces.
Other companies operating in South Africa and in neighboring countries will also have reduced gold and platinum production. In light of continuing demand and supply concerns as a result of production declines and rising mining costs, the price of Anavar Que Es gold should continue to climb.