1) The factor that influences the most the long-term performance of gold is no longer the U.S.’ sentiment and behavior. Currently, the emerging markets are strongly influencing the precious metal as they covers almost 70% of the annual demand, while U.S. accounts for almost 10%. Covering the period April-June 2013, the demand for gold increased with 54% in China and 51% in India.
2) Central Banks remain committed to buying gold. Even if the demand in the second quarter (71 tones) didn’t exceed previous performances, Central Banks were net purchasers of gold for the tenth consecutive quarter.
3) Gold remains an element which has the quality of balancing the investors’ portfolios. The U.S.’s interest rate policy might not weight so much for the foreseeable future.
4) As recycling of gold represents 40% of total supply over the last five years, the first 6 months of 2013 showed a considerably drop in supply due to this cause. The decreasing in offer was also caused by the slowdown in the mining activity.