Gold Dynamics Gold is continuing to move from weak hands of technical traders and Western banks to strong hands in emerging economies. The sell side has limited depth. Western banks are under pressure to sell out their paper positions and physical stores to protect fiat currencies. The buy side is much stronger with less debt burden and incentive to diversify their reserve holdings of U.S. debt to hedge against a depreciating U.S. dollar.
On the sell side, mine production and recycling was short 29 tons in meeting jewlery, investment, and industry demand of 3,859 tons last year. JP Morgan deliverable gold stock is down 65%. The COMEX gold stock is down 50%. Singapore premiums are $3/oz. Premiums are up in India and China. Swiss refiners who refine 70% of the world's gold increased premiums and can not keep up with demand. European central banks ceased selling gold in 2008 and central banks are now net buyers.
https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/26_Stunning_Gold_Shortages_As_Western_Ponzi_Scheme_Collapsing.html
On the buy side demand is exceeding mine and recycling supply by 29 tons last year with the short fall being meet with a transfer of above ground stores of gold from the West to emerging markets. While jewlery demand fell in the 2008 - 2009 financial crisis it is picking up again and the strongest growth is coming from investment demand that grew 537% in 2011 alone. Central banks are net buyers since 2010.
https://www.24hgold.com/english/news-gold-silver-russia-greece-turkey-other-central-banks-buy-gold-china-s-pboc-buying-.aspx?article=4389413918G10020&redirect=false&contributor=Mark+O%27Byrne
World Gold Council supply/demand summary: https://www.gold.org/investment/why_how_and_where/why_invest/demand_and_supply/
The underlying drivers in a transfer of wealth from the west to the east are accelerating with continued pressure to priint money and hyperinflation building:
https://www.24hgold.com/english/news-gold-silver-bernanke-s-federal-reserve-and-other-central-banks-will-continue-their-superb-productivi.aspx?article=4387559092G10020&redirect=false&contributor=Egon+von+Greyerz
https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/26_Stunning_Gold_Shortages_As_Western_Ponzi_Scheme_Collapsing.html