GoldDrivers 2009 – Extraordinary Bullish Outlook for Gold

By: Eric Hommelberg ldSeek.com

Dollar topping out Physical demand skyrocketing Supply chain shutting down COMEX Gold Manipulation exposed Gold shares on the move again

It sure has been a brutal year for gold and its shares and many may wonder if the $1030 top clocked in March 2008 marked the top for the gold bull market that started in April 2001. Despite the fact that many analysts want you to believe that gold has failed to act as a

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The spot price of gold has fallen more than 20% from its all-time high, reached in March of 2008. But if you think that means demand has declined, think again.

Gold demand has in fact exploded, and not just here and there. Everywhere. Around the world, customers have been queuing up to strip coin shops’ shelves bare. Mints have been running 24/7 and still have been forced to ration coin shipments to their dealers. ETF vaults are bulging.

Now, the World Gold Council has confirmed the trend with hard numbers for the third quarter of this year. In a page-and-a-half press release summarizing 3Q2008 activity, the WGC had to use the word “record” ten times. Some highlights:

Dollar demand for gold in Q3 was a record US$32 billion, 45% higher than the previous record, set in 2Q2008. Identifiable investment demand, which incorporates demand for gold through exchange-traded funds (ETFs), bars and coins, rose to ...

Gold bugs have suffered one of their worst years in history, says Keith Fitz-Gerald. But the US dollar looks increasingly fragile beyond this period of short-term panic buying. And that means the outlook for gold remains strong. Keith says every investor should ensure gold forms part of their investment strategy for 2009.

This from Money Morning:

If you were counting on gold to boost your returns this year, chances are you’ve been cruelly disappointed. In fact, when it comes to gold-related investments, virtually every category is down, making this one of the worst years in history for gold investors.

So, why is it that the largest of the large futures traders have some of the lowest net short positions in years? And what does this tell us about gold prices in the near future?

I’ll get to that in a minute. But first …

What Went Wrong?

In my analysis, I’ve identified the

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PGold demand is exploding highernbsp;... shouldn’t be a surprise.nbsp;-- LarrybrbrRECORD DOLLAR DEMAND FOR GOLD AS WORLD LOOKS FOR HAVEN FROM TURMOILbrbrNovember 19, 2008 (WORLD GOLD COUNCIL) -- Dollar demand for gold reached an all time quarterly record of US$32bn in the third quarter of 2008 as investors around the world sought refuge from the global financial meltdown, and jewellery buyers returned to the market in droves on a lower gold price. This figure was 45% higher than the previous record in Q2 2008.Tonnage demand was also 18% higher than a year earlier.brbrIdentifiable investment demand, which incorporates demand for gold through exchange traded funds (ETFs) and bars and coins, was the biggest contributor to overall demand during the quarter, up to US$10.7bn (382 tonnes), double year earlier levels, according to Gold Demand Trends, released today by World Gold Council (WGC).brbrThe figures, compiled independently for WGC by GFMS Limited, show retail investment ...