To give you an idea of how important gold is considered in Malaysia, the prime minister was delivering the keynote speech in a recent gold conference.
Can you imagine David Cameron or Barack Obama giving a keynote entitled ‘Gold: Sustaining Future Growth’ It just wouldn’t happen.
The episode has got me thinking about the vastly different attitudes to gold between East and West – and that’s what I want to look at today…
Looking at worldwide gold demand trends, two things are pretty clear. Asian demand is increasing and Western demand is falling.
In fact, world gold mine production (averaging about 2,800 tonnes per year over the last five years) only just manages to cover Asian demand. In the chart below (from Nick Laird at Sharelynx), we see Asian demand in red. It has risen almost inexorably since the early 1980s, while Western demand (the blue line) has been falling since 2003.
This post was published at TruthinGold on September 3, 2014.