Record low for Gold Supplies, says Investment Veteran
By Sara Smith | 15:30:54 | 15 April 2008

(excerpts)
Gold supplies are at an all-time low and may drop by as much as 15% over the next five years, according to BlackRock’s precious metals investment veteran Graham Birch.

The Citywire AAA-rated manager, whose MLIIF World Gold Fund fund celebrates its 20th anniversary this month, said that a lack of new production is resulting in tension between jewellery and investor markets.

‘Investor demand has really come back to life as people have realised that gold is a rare commodity,’ he said.

Supply is low however, as gold exploration in the past 10 years has been minimal and although exploration spending has increased, it can take up to seven years for a mine to become fully functional.

http://www.citywire.co.uk/selector/-/news/fund-manager-interviews/content.aspx?ID=301000


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