- Central Banks keep adding to their Smaug-sized hoards of gold. But they're still below levels of a decade ago.
- Net Chinese gold imports through Hong Kong plus the country’s own domestic production, are together likely to reach well over 1,500 tonnes in calendar 2013.
- Despite government attempts to discourage imports, India's gold imports should be close to 1,000 tonnes this year. More if you include all the smuggled gold.
- Together, China and India will account for nearly all the world’s 2013 newly mined gold supply.
- In percentage terms, they are consumers of more than 60% of global gold.
- Selling of physical gold by exchange-traded funds is the biggest bearish force on the market right now.
- Investors sold 711.8 metric tonnes from bullion-backed exchange-traded products this year, erasing more than $61 billion from the value of the funds, according to Bloomberg.
- But the sheer amount of gold being produced also had an effect, at least through the end of 2012. The world produced 2,848 metric tonnes of gold in 2012.
- How much will production change with gold prices under pressure? Gold produced by US mines has dropped 5% from 2012 to-date totals and is almost 10% lower than 2011 to-date totals.
- The price of gold is well under the average all-in cost of mining gold, which is $1,538, according to Societe Generale.
These are some important things to keep in mind when considering investments in precious metals and miners.