Jewelry Fabrication Demand The World Gold Council (WGC) just released first quarter 2012 Jewelry Fabrication Demand numbers. For the first three months of 2012 jewelry demand was 511 metric tonnes, up 80 tonnes (18.5%) compared to 431 metric tonnes from the fourth quarter of 2011. Bar and Coin Demand Public and institutional investment demand for Gold coins and bars have increased dramatically over the past two years. WGC numbers show coin and bar demand for 2009 at 786 metric tonnes, 2010 at 1,210 metric tonnes, and 2011 at 1,524 metric tonnes. Demand has increased 94% in just two years as the average price continues to increase 61%. The increasing amount of union strikes in many of the major Gold/Silver producing countries Freeport-McMoRan's Indonesian Grasberg Copper and Gold mine (the world's largest Gold mine) lost production of Gold by 3 million ounces per day since the strike started and nearly 8,000 workers went on strike on September 15, 2011. On December 14, 2011, a labor agreement ended the strike and provided for a 37% pay increase with improved benefits for unionized employees and created better conditions for contractors. Shortages of available labor in the rural areas where mining properties are located March 2012: South Africa reported that its Gold production fell 4.5% year after year because of the shortage of available workers. Increasing demand for larger royalties, and taxes from local and national governments May 2012: Aram Shishmanian, Chief Executive of World Gold Council, said that sharp increases in mining costs mean that Gold will need to reach $3,000 per ounce in five years for the industry to remain profitable. Miners currently needed a Gold price of $1,300 to survive, Shishmanian said, but faced steep rises in mining costs, along with the cost of dividends and host nation taxes and royalties. May 2012: Indonesia is reportedly planning to impose up to a 50% export tax on a wide range of Environmental holdups April 2012: Goldcorp Inc, Canada's No. 2 Gold miner, said that its environmental permit approval fo lick on below for more http://www.kitco.com/ind/Stuppler/20120601.html
