China and India consuming the world’s total mine supply
Adam Pike, News Editor
30 May 2014, 10:30 a.m.
According to the latest figures released by Bloomberg, China and India are consuming the worlds entire mine supply. After analysing consumption and mining data, Bloomberg concluded the two most populous countries are consuming over 8 million ounces per month. With only 7.44 million ounces mined each month this would leave a monthly deficient of 0.56 million ounces.
Bloomberg analyst, Ken Hoffman, suggests the deficit could widen significantly if the newly elected Indian government relax the gold import restrictions and mine production drops as expected.
Overall, Hoffman concludes the Chinese and Indians understand gold’s intrinsic value and invest in precious metals to protect themselves from currency debasement and financial instability.