{"id":20628,"date":"2016-05-16T10:34:22","date_gmt":"2016-05-16T15:34:22","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20628"},"modified":"2016-05-16T10:34:22","modified_gmt":"2016-05-16T15:34:22","slug":"fresh-mainstream-nonsense-on-gold-demand","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20628","title":{"rendered":"Fresh Mainstream Nonsense on Gold Demand"},"content":{"rendered":"
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Fresh Mainstream Nonsense on Gold Demand\u00a0<\/a><\/h3>\n

They Will Never Get It\u2026<\/strong><\/p>\n<\/div>\n

\n

We and many others have made a valiant effort over the years to explain what actually moves the gold market (as examples see e.g. our\u00a0 article \u201cMisconceptions About Gold<\/a>\u201d, or Robert Blumen\u2019s excellent essay \u201cMisunderstanding Gold Demand<\/a>\u201d).\u00a0 Sometimes it is a bit frustrating when we realize it has probably all been for naught.<\/p>\n

\"GoldGold wants to know what it has done\u00a0now<\/em>\u2026 \u00a0 \u00a0\u00a0Photo credit: Ajay Verma \/ Reuters<\/p>\n

This was brought home to us again in a recent missive posted at Kitco, which discusses an RBC research note on gold. In a way, it is actually quite funny. The post at Kitco is titled \u201cGold\u2019s \u2018One-legged\u2019 Rally Is Cause of Concern<\/a>\u201d.<\/p>\n

We can assure you it is not of \u201cconcern\u201d to us. But we did wonder why the rally was supposedly \u201cone-legged\u201d, so we decided to read on.<\/p>\n

Here is what RBC has decided was worth sharing in its new research report:<\/p>\n

Despite gold\u2019s impressive run up so far this year, analysts at RBC Capital Markets are concerned by the \u201cone-legged\u201d nature of its rally.\u00a0In a research report Friday, commodity strategists for the bank noted that gold\u2019s 2016 upswing has been mainly driven by investors, while other sources of demand haven\u2019t followed through.<\/em><\/strong><\/p>\n

\u201cIn fact, investment demand seems to be the only leg driving this one-legged rally. For us to turn positive, we would need to see this strength replicated elsewhere,\u201d they said. \u201cInvestor sentiment has turned amid a flight to safety, but that seems to be the only sentiment that has in fact shifted.\u201d<\/em><\/strong><\/p><\/blockquote>\n

(emphasis added)<\/p>\n

Color us completely flabbergasted. What \u201cothers sources of demand\u201d apart from investment demand are supposedly needed to produce a rally in gold and make it two-legged or maybe even three-legged?<\/p>\n

\"1-Gold,<\/a>June gold, daily. You poor one-legged thing! \u2013 click to enlarge.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Fresh Mainstream Nonsense on Gold Demand\u00a0 They Will Never Get It\u2026 We and many others have made a valiant effort over the years to explain what actually moves the gold market (as examples see e.g. our\u00a0 article \u201cMisconceptions About Gold\u201d, or Robert Blumen\u2019s excellent essay \u201cMisunderstanding Gold Demand\u201d).\u00a0 Sometimes it is a bit frustrating when […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,374,4086,6170,647,12521,2983,1988],"class_list":["post-20628","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-gold","tag-investments","tag-pater-tenebrarum","tag-precious-metals","tag-rbc","tag-royal-bank-of-canada","tag-world-gold-council"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20628"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20628\/revisions"}],"predecessor-version":[{"id":20629,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20628\/revisions\/20629"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}