2013-09-18financialsense.com

If the market didn't show an increase in total scrap when the price of gold increased 72% in three years, why would it expect it to increase on a 17% average price decline? The very real problem the world is now facing is that it's running low on supplies of available gold scrap.

I believe gold scrap for the second half will be closer to 650-675 tonnes which would put the total for 2013 to be approximately 1,337 tonnes, or 60 t less than forecasted. Either way, if GFMS is correct and the market does supply 1,397 tonnes of gold scrap in 2013, it's still nearly 200 tonnes (12%) less than it was in 2012.


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