More Bullish News for Gold

I have come across a couple, non-technical, tid-bits of information that are bullish for gold.

The first is that gold output has declined to a 10 year low. Gold production declined by 3% last year. Remember that the ration between gold in circulation and global population, in other words, the amount of gold per global capita, has been decreasing. There is less and less gold per person in the world every year. This is amidst a growing global demand for the yellow metal.

Also, Japan could release a gold ETF by the end of the month. It would be released on the Osaka Securities Exchange, which is the second largest Japanese stock market. As the Streettracks gold trust (GLD) has done in the U.S., this should increase the demand for gold, being that it makes it much more convenient for investors to add gold to their portfolios. (Report by the International Herald Tribune)

Also, the wedding season is expected to bring more demand as jewelers increase their orders for the yellow metal. Not everything with the gold market has to do with technical and geopolitical issues, although those tend to be the driving forces.