The Financial Times published a story titled, “Good as GLD” that if nothing else helps illustrate the sources of global gold demand. The author is of the opinion that the ones who benefit most from the public’s recent appetite to hold physical gold is, “miners, promoters and vault manufactures, not the fearful gold bugs themselves.”

The chart from the Financial Times shows that the increase in demand for Gold has not come sources that use it as a productive input, industry and jewelers,but rather from investors, and that around half of the investment demand has come from ETFs and similar products.