Are We at the Start of a New Bull Market?

Source: Mineweb.com  (9/13/07)

GFMS Ltd's first update to the 2007 Gold Survey concludes that the first half of the year saw gold experience over 200 tonnes of net disinvestment, driven by large-scale speculative offloading, but that we are now experiencing a sea change and that there will be a significant upswing in investor purchases over the rest of the year.

GFMS Ltd has released its first update to the 2007 Gold Survey and at the group's annual London seminar on September 13th, GFMS Chairman Philip Klapwijk outlined the group's conclusions with respect to supply and demand in the market during 2007. He also gave considerable attention to the role of the investor and the activity in external markets, which are covered in a separate article on this site.

The study concludes that the first half of the year saw gold experience over 200 tonnes of net disinvestment, driven by large-scale speculative offloading, but that we are now experiencing a sea change and that there will be a significant upswing in investor purchases over the rest of the year. Net disinvestment for the year as a whole is thus estimated at just 110 tonnes and the important conclusion is that we are now embarking on a new stage in the gold bull market.

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