Eric Sprott*'s Response
to World Gold Council
From Our Archives:
World Gold Council
Stands By Figures,
Cites 'Great Emphasis'
on Data Quality
The World Gold Council is not moved by fund manager Eric Sprott*'s call to revamp the industry's statistics on demand .. "The World Gold Council has been sharing gold demand data for decades and we place a great emphasis on the quality of our data. Providing greater transparency and accuracy to the supply and demand model is a process in which the World Gold Council is heavily engaged on an ongoing basis .. Providing more transparency and accuracy to the supply and demand model is an ongoing process in which we are heavily engaged."
LINK HERE to our related post on Eric Sprott*Letter From Eric Sprott*:
Dear World Gold Council
"As you very well know, the business environment for gold producers has been extremely challenging over the past few years. While demand for physical gold remains extremely strong, prices on the COMEX have fallen precipitously. This contradictory situation is the single most important obstacle to a healthy gold mining industry. In my opinion, the massive imbalance between supply and demand is not reflected in prices because available statistics are misleading. It is not the first time that GFMS (and World Gold Council) statistics come under pressure from the investment community. In his now celebrated The 1998 Gold Book Annual, Frank Veneroso* demonstrated the inconsistencies in GFMS gold demand data and proceeded to show how they grossly underestimated demand. The tremendous increase in the price of gold over the following years vindicated his conclusions .. For very different reasons, we are now at a similar pivotal point for gold. Over the past few years, we have seen incredible incremental demand from emerging markets .. To conclude, I urge the leaders of the World Gold Council, for the benefit of their own members, to improve the quality of their data and find alternative sources than the GFMS, which paints a misleading picture of the real demand for gold. This lack of quality information has certainly been one of the driving factors behind the lack of investors' confidence towards gold as an investment. Gold has been one of the best performing asset classes since 2000, and the World Gold Council should be promoting it accordingly."
LINK HERE To Read The Entire Letter 
