The following interview provides another view of how gold demand is broken down:
The only group that is negative on gold is the short-term trader/investor. This includes the agents of the Fed such as Goldman Sachs. Is the tail wagging the dog?
Notice what the average cost to mine gold is- $1,200 to $1,300 per ounce. Do you think gold miners will sell their product at a loss at any significant volume? Thus you can see why my bottom number is in the $1,250 range for a short term dip. What do you think will happen to the share price if gold skyrockets to $3,500 per ounce?
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