RE:RE:RE:RE:New paradigmThe problem with gold demand for the purpose of hoarding as a store of value against a feared event, it usually occurs for awhile then passes.....or reverses. Lately there was a spike in demand from Germany and Switzerland due to feard of EU QE and a possible Grexit. Events like that are characterized by buyers increasing their hoard then stop buying. You would have to have a huge paradigm shift around the world where a broad number of investors think they need to increase their physical gold over an extended period of time, and I don't see that happening at the moment. It could happen when stock market investors get nervous that their record high stocks are overpriced and they start to take money off the table and put it into gold. I think some of the recovery in gold stocks this year is coming from the profits of other stocks looking for something cheap. That could become much bigger over the next year or so especially if we see the S&P continue to rise another 400-500 points.
Demand for gold consumption has some potential. Most gold "consumed" is in jewelry. With India's economy looking increasingly better and about to overtake China in annual GDP growth %, there is likely to be some extra demand there as they love gold jewelry. Also, there have been some signs that gold is making a popular comeback in the Western world for bling.