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Could Bad Data Be Depressing the Gold Price? Eric Sprott Says GFMS Stats Are Flawed

by JT Long of The Gold Report, via Gold Seek:

Demand for gold bars, coins and jewelry increased to multiyear highs in the first half of 2013, but was offset by outflows from exchange-traded funds, according to the World Gold Council, which produces a quarterly Gold Demand Trends Report and recently released the first-ever Direct Economic Impact of Gold Report. Sprott Securities founder Eric Sprott questioned those statistics in a call-out on his website. He figures that the demand for gold is actually 3,000 tons more than the annual supply, and therefore the gold price will soon be much higher. What is the true demand for gold? How much is really available in any given year? Does supply and demand really determine the price of gold anymore? The Gold Report called Sprott and John Gravelle, global and Canadian mining leader for PwC, which produced the report for the World Gold Council, to find out.

The Gold Report: Eric, you published an Open Letter to the World Gold Council saying that the massive imbalance between supply and demand is not reflected in prices because available statistics are misleading, and that is the most important obstacle to a healthy gold mining industry. Why has it been so difficult to get accurate statistics and what should be measured to get a better picture of demand, particularly in emerging markets?

Read More @ GoldSeek.com

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