Kitco is not the best source to say the least, as they have the likes of Nadler who has been given a daily soap box to diss gold for years there. He has been wrong about gold all the way up from $250...and I actually emailed him last year and questioned him. I got a very sharp, dismissive reply wherein he informed me that gold would be going back to the $650 level. When I later queiried him on his gaff he again dimissed it with a comment that he meant that gold would average down to the $650 to $750 area.
Also, there is some suspicion that Kitco has other motives as per Bill Murphy and GATA suspicions. It would be a long exercise here to review.
Charts can be misleading as you know. Those charts are from the CPM Group headed by Jeff Christian, who has also been wrong about gold for years. Jeff Christian just got blown out of the water for his gaff at the recent CFTC panel inquiries where in he inadvertantly admitted that the paper leverage on gold is 100 to 1.
I don't have time to go into all the charts but annual mine production decreases are a fact...as the big producers can't even replace the ore threy are taking out of the ground today...also, most of the big miners have high-graded and are now mining lower grades. Rich, new, high grade deposits...like SFMI's are very hard to find. Try to find one anywhere on earth. there will be only a few...and probably in a geopolitically risky country such as Ecuador.
Secondary supply such as scrap has increased due to the fact that naieve people are being encouraged to sell all their "old gold jewelery". Ever wonder why someone else wants to buy it so badly?
If you look at annual demand for jewejery, electronics, dental and other...yes, it is down. However, the elephant in the room ,conveniently not shown, is investment demand...which has been higher than availale supply for over ten years. Where has all the difference been made up? Well, not only have western central banks sold off at least 100 to 1200 tons per year over those years (and probably much more), but they have actually sold/leased it off twice...as they still double count it as if it is still in their inventory. And that is just the surface of it all as there have been counterfiet bars showing up and then there is the 100 to one leverage of gold. Then there are the GLS and SLV ETFs that really don't have the gold or silver they purport. ...nor does the COMEX or Fort Knox. You will note that the Fed. wants no part of a gold audit which ron Paul has successfully pursued.
I could go on for pages but if you want to research all thsi just go to GATA.org and spenf a few hours. It is all there and it is quite the revelation. It takes some time and research.
As Bill Murphy has just stated, watch for a sharp increase in the price of gold and silver as all this fraud over the last ten years is now surfacing.
